HISTORY  OF  THE 
SAN  FRANCISCO  STOCK 
AND  EXCHANGE  BOARD 


HISTORY^*  SAN 
FRANCISCO  STOCKS 
EXCHANGE  BOARD 


bythe  CHAJRMW 

JOS.LKINO 


SAN  FRANCISCO 

JOS.LKING 

191O 


Copyrisht,  IQIO,  by 
JOSEPH  L.  KING 


Printed  by 

Vfee  fetanlr p.TEaplor  Companp 
San  Francisco 


5131 

55 


DEDICATED  TO  THE 
FOUNDERS  OF  THE 
SAN  FRANCISCO  STOCK 
AND  EXCHANGE  BOARD 


FOREWORD 


History  of  the  Sanfraneisco 
Stock  and  Exchange  Bocwl 


FOREWORD 

My  reason  for  appearing  before  the  public 
as  the  author  of  the  following  pages  is  that 
all  of  the  records  of  the  San  Francisco  Stock 
and  Exchange  Board  were  destroyed  in  the 
great  fire  that  visited  San  Francisco  in  April, 
1906.  Consequently  the  historical  facts  here 
recorded  would  possibly  be  lost  to  posterity, 
unless  so  preserved. 

The  rich  discoveries  in  the  Comstock  Lode 
and  the  consequent  mining  excitement  that 
followed  between  the  years  1870  and  1880 
made  San  Francisco  conspicuous  among  the 
principal  cities  of  the  United  States.  As  the 
San  Francisco  Stock  and  Exchange  Board 
was  the  medium  through  which  all  the  im- 
mense transactions  in  mining  shares  occurred 
and  where  large  fortunes  were  made  and  lost, 
the  Board  acquired  a  world-wide  reputation. 
In  the  years  mentioned  the  Board  possessed 
a  splendid  membership.  They  were  mostly 
of  that  notable  generation  of  pioneers  that 
made  California  great  in  the  Union  of  States. 
As  many  of  the  members  have  passed  away 
and  evidences  of  their  lives  were  destroyed  Foreword 
in  the  great  fire,  one  of  the  witnesses  of  these 


History  of  the  Sanfrancisco 


Foreword 


events  may  be  pardoned  for  reciting  them  in 
this  manner  and  placing  them  before  the 
public. 

The  incidents  here  narrated  are  facts 
though  mostly  taken  from  memory.  Thus  the 
reader  will  understand  that  this  is  not  a  work 
of  fiction. 

The  original  object  was  to  re-compile  a  com- 
plete record  of  membership,  which  work  I 
regret  to  say  is  so  far  a  failure,  much  informa- 
tion still  being  required.  A  week  was  spent 
in  the  State  Library  at  Sacramento,  and  many 
visits  were  made  to  the  Bancroft  Library  at 
the  University  of  California,  and  to  the  file 
of  the  Mining  and  Scientific  Press  at  the  Min- 
ing Bureau  in  Ferry  Building.  I  am  also  in- 
debted to  the  files  of  the  Alta  California,  Bulle- 
tin, Call,  Chronicle,  Stock  Report  and  Post, 
daily  newspapers  established  in  San  Francisco 
prior  and  immediately  subsequent  to  the  or- 
ganization of  the  Board. 

The  dates  of  the  important  events  here 
given  were  thus  acquired.  Copies  of  the  San 
Francisco  News  Letter  at  the  Bancroft  Li- 
brary furnished  much  information  as  to  the 
membership.  Unfortunately  I  cannot  find, 
on  this  Coast,  a  complete  file  of  the  News 
Letter  from  September,  1862,  to  September, 
1864,  which  would  give  additional  facts. 

From  Mr.  J.  H.  G.  Wolf  I  secured  figures 
[x] 


Stock  andExchaweBoard 


of  the  ore  yield  by  the  different  mines  in  the 
Comstock  Lode,  the  same  being  taken  from  the 
excellent  map  issued  by  this  gentleman  in 
1908. 

George  I.  Ives,  Mark  L.  McDonald,  M.  Jas- 
per McDonald,  A.  H.  Lissak,  Walter  Turn- 
bull,  Robert  F.  Morrow,  H.  H.  Noble,  W.  H. 
Wright,  Sam  Franks,  E.  J.  White  and  others 
have  contributed  by  personal  recollections  to 
many  of  the  anecdotes. 

It  is  hoped  that  the  book  will  prove  accept- 
able to  all  Californians,  old  and  young  alike. 

It  has  been  my  effort  to  confine  my  state- 
ments to  the  Board  and  its  members.  In  the 
few  other  matters  mentioned,  what  I  have 
known  to  be  true  is  mentioned.  Rumors  and 
street  stories,  especially  those  relating  to  the 
suspension  of  the  Bank  of  California,  are  pur- 
posely omitted. 

The  illustrations  are  all  of  what  is  now 
termed  old  San  Francisco,  taken  before  the 
great  earthquake  and  subsequent  fire  of  April, 
1906. 


JOSEPH  L.  KING. 


Foreword 


[xi] 


CONTENTS 


Chapter  10. 
Chapter  n. 

Chapter  12. 
i. 
2. 
3- 
4- 


History  of  the  SanJrandsco 
Stock  and 'Exchange Board 


CONTENTS 

Page 

Organization  of  the  Board. .  i 
Additional  Early  History. . .  19 
Organization  of  Early  Banks  31 

Hale  &  Norcross  Corner 37 

Board  Rules 43 

Value  of  Seats 53 

Ophir  Contest 67 

Great  Business  of  1874-1875  73 
Company  o  f  Associated 

Stock  Brokers 87 

Suspension  of  the  Bank  of 

California   101 

The  Greatest  Market  of  the 

Board    117 

Anecdotes  123 

James  R.  Keene 123 

Horace  L.  Hill 127 

Col.  E.  E.  Eyre 127 

Hat  Story — Berry,  Wilke  and 

Mark  L.  McDonald 129 

Jack   McKenty    130 

Budd's  Shave 131 

Louis  Eppinger 133 

Unknown  Old  Calif ornian 134 

B.  F.  Sherwood 134 

[xv] 


Chapter 

i. 

Chapter 

2. 

Chapter 

3- 

Chapter 

4- 

Chapter 

5. 

Chapter 

6. 

Chapter 

7- 

Chapter 

8. 

Chapter 

9- 

Contents 


History  of  the  Sanfrancisco 


Contents 


Chapter  12  —  Continued  ] 

10.  George  Wright 

11.  $600  Loss 

12.  Rabbit  Story 

13.  Thomas  T.  Atkinson 

14.  Holiday  Prices   

15.  E.  J.  De  Santa  Marina 

16.  A.  H.  Lissak 

17.  M.  D.  Townsend 

18.  A  Large  Order , 

19.  Coll  Deane  ........ 

20.  Judge  Thomas  Sunderland 

21.  Jacob  Greenebaum 

22.  Jeremiah  Lynch 

23.  Robert  F.   Rogers 

24.  Richard  C.  Hooker 

25.  Virginia  City  Operators 

26.  1000  Consolidated  Virginia  Sold 

at  $800 

27.  W.  C.  Budd 

28.  W.  C.  Budd 

29.  James    C.    Flood   and    Robert 

Sherwood 

30.  Gen.  Geo.  S.  Dodge 

31.  Archie  Borland   

32.  George  W.  Smiley 

33.  John  Perry,  Jr.. 

34.  Glazier    &    Co.,    Louis    Sloss, 

Lewis  Gerstle 

35.  C.  W.  Bonynge. .,. 

[xvi] 


153 
153 
154 

155 
156 
156 
157 
158 

158 

1 60 


Stock  and  Exchange  Board 


—  Continued  Page 

J.  B.  E.  Cavallier 161 

Henry  Schmiedell 162 

Stock  Report  and  Stock  Ex- 
change      163 

S.  J.  Sparrow 163 

Keene,  Williams  and  Coleman  164 
Cheeseman,    Head    &    Thorn- 
burgh   164 

James  H.  Latham,  J.  K.  S.  La- 
tham, Homer  S.  King. .....   164 

S.   B.   Boswell 166 

H.  H.  Noble  and  Other  Mem- 
bers     166 

Change  of  Seats 167 

Dr.  C.  W.  Fox 168 

Sierra  Nevada  and  Union 169 

Ophir  and  Mexican 169 

Consolidated  Virginia  and  Cali- 
fornia    172 

Best  &  Belcher 175 

Gould  &  Curry 175 

Savage  176 

Hale  &  Norcross 178 

Chollar  and  Potosi 178 

Bullion 181 

Exchequer   and   Alpha 181 

Imperial  . 182 

Challenge  and  Confidence 184 

Kentuck ...... 184 

[  xvii  ] 


39- 
40. 
41. 

42. 

43- 
44. 

45- 
46. 

47- 
48. 
49. 

50. 
Si- 

52. 
53- 
54- 
55- 
56. 
57- 
58. 
59- 


Contents 


History  of  the  SanFrancisco 


Contents 


(Chapter  12  —  Continued  Page 

60.  Yellow  Jacket   185 

61.  Crown  Point  and  Belcher 185 

62.  Overman   187 

63.  Caledonia    188 

64.  American  Flat 188 

65.  Alta 189 

66.  Eureka  and  Jackson 193 

67.  Mark  L.  McDonald 194 

68.  Charles  N.  Felton 195 

69.  Edward  F.  Hall 196 

70.  General  U.  S.  Grant 196 

71.  Advantage  of  a  Healthy  Stock 

Market 197 

72.  High  Price  for  Chollar 198 

73.  A.  J.  Pope 199 

74.  $500  Rise  in  Thirty  Days 199 

75.  Prices  August  26,  1875 200 

76.  Board  Customs  203 

77.  Waterloo  Story  205 

78.  J.  R.  Fitch 206 

79.  Col.  P.  C.  Hyman 206 

80.  A.   G.    Kinsey 207 

81.  Franklin  Lawton 207 

82.  J.  W.  Brown 207 

83.  Walter  Turnbull 208 

84.  William   Sharon    208 

85.  Robert  F.  Morrow 210 

86.  Bonanza  Firm.  Flood,  Mackay, 

Fair,  O'Brien 212 

[  xviii  ] 


Stock  and  Exchange  Board 


—  Continued  Page 

87.  O.  V.  Walker 215 

88.  George  I.   Ives 215 

89.  Billy   Brown's  Bet  with  Jack 

McKenty  215 

90.  Jackson  McKenty 219 

91.  Gershom   A.   Coursen 221 

92.  How  to  Place  a  Stock  on  the 

Board 221 

93.  Pauper   Alley    223 

94.  Excelsior   Stock    225 

95.  George  W.   Cope 227 

96.  Consolidated  Virginia  Order. .  228 

97.  F.  W.  Hadley 229 

98.  McDonald  and  Whitney 230 

99.  Financial  Help    232 

100.  H.  H.  Noble 232 

101.  H.   H.   Noble 233 

102.  George  I.  Ives 234 

103.  J.  H.  Mahoney,  Jr 236 

104.  J.  H.  Mahoney,  Jr 238 

105.  Joseph  H.  Jones 239 

106.  Over  Drawn  at  Bank 241 

107.  Cipher  Dispatches 243 

1 08.  Profits    on    100    Consolidated 

Virginia 244 

109.  William  Edwards  249 

no.     D.  O.  Mills 252 

in.     Otto  Bach 252 

112.    Comstocks 254 

[xix] 


Contents 


History  of  the  Sanfrcmdsco 

z=*= 

Chapter  12 —  Continued  Page 

113.  Old   Street  Operators 254 

114.  E.  J.   Baldwin 256 

Chapter  13.     Superstitions    263 

Chapter  14.     Native   Sons    271 

Chapter  15.     Later  History  of  the  Board  275 
Chapter  16.     Resumption  of  Specie  Pay- 
ments       283 

Chapter  17.  Great   Decline   in   Business  293 

Chapter  18.  Revival  of  Business 299 

Chapter  19.  Depression   and   Revival...   307 

Chapter  20.  Board  Membership 319 


Contents 


[xx] 


ILLUSTRATIONS 


History  of  the  Sanfhmcisco 
Stock  and Exchange Board 


ILLUSTRATIONS 

Facsimile  of  Stock  Certificate  deposited  in 

the  box  at  the  laying  of  the  corner-stone  of 

the  Stock  and  Exchange  Board  Building,  April 

27,  1876 — first  page  of  cover. 

Joseph   L.   King Frontispiece 

Facing 
Page 

Old  Metropolitan  Theatre  where  the 
Board  held  its  Sessions  in  1865 4 

Facsimile  of  page  of  Record  of  first  five 
days'  transactions  of  the  Board 12 

Officers  of  the  Board  in  1872  —  Henry 
Schmiedell,  E.  P.  Peckham,  B.  Howard 
Coit,  Geo.  W.  Smiley,  Franklin  Lawton  22 

Old  Merchants'  Exchange  where  the 
Board  met,  1867-1870 26 

Northeast  corner  California  and  Mont- 
gomery Streets  in  1865 68 

South  side  California  Street  between 
Montgomery  and  Sansome  Streets,  1870  76 

Northwest  corner  California  and  Mont- 
gomery Streets,  1870.. 82 

Southeast  corner  Pine  and  Montgomery 

Streets,  1880   94     Illustrations 

William  C.  Ralston 102 

[  xxiii  ] 


History  of  the  Sanfraneisco 


Illustrations 


San  Francisco  Stock  and  Exchange  Board 
Building,  occupied  October  i,  1877 

Old  Bank  of  California 

James  R.   Keene 

Milton  S.  Latham,  U.  S.  Senator 

Virginia  City,  Nevada,  1865 

Isaac  L.  Requa 

John  P.  Jones,  U.  S.  Senator 

Robert  F.  Morrow. 

At  McDonald's  Cottage,  Saratoga,   New 

York,  1875  — M.  L.  McDonald,  Joseph  H. 
Jones,  Dr.  C.  H.  Bradford,  J.  H.  Ma- 
honey,  B.  F.  Sherwood 

Geo.   Hearst 

William  Sharon,  U.  S.  Senator 

James  C.  Flood 

John  W.  Mackay 

Jas.  G.  Fair,  U.  S.  Senator 

William  S.   O'Brien 

Mark  L.  McDonald 

Pauper  Alley   

President  U.  S.  Grant's  visit  to  the  Corn- 
stock,  1879 

Type  of  cipher  telegrams  used  in  stock 
transactions  

E.  J.  White,  an  early  member 

Board  room  on  Pine  Street,  1904 

Members  of  the  Board,  1907 

A.  B.  Ruggles,  President  of  the  San  Fran- 
cisco Stock  and  Exchange  Board,  1910 
[  xxiv  ] 


106 

112 
128 
164 
172 
1 80 

188 
192 


194 
206 
208 

212 
214 
218 
22O 
230 
234 

244 

252 
276 
284 
310 


ORGANIZATION  OF  THE  BOARD 


History  of  the  Sanfhmdsco 
Stock  and  Exchange  Board 


CHAPTER   I 
ORGANIZATION   OF  THE   BOARD 


OW  quickly  events  followed 
each  other  in  the  early  days 
of  California  prior  to  the 
organization,  on  Septem- 
ber n,  1862,  of  the  San 
Francisco  Stock  and  Ex- 
change Board! 

Fremont's  California  Ex- 
pedition, 1845-1846. 
War  with  Mexico,  May  n,  1846. 
Discovery    of    gold    in    California,    January 
19,  1848. 

End  of  the  Mexican  War,  February  2,  1848. 
California  a  United  States  Territory,  1848. 
May  fire,  1850. 

California  a  State,  September  9,  1850. 
May  and  June  fires  of  1851. 
Vigilance  Committee  of  1851. 
Failure  of  Adams   &  Co.   and  other  large 
banks,  February  22,  1855. 

Vigilance  Committee,  May  14,  1856. 
Discovery  of  the  Comstock  Lode  in  Utah 
Territory,  1859. 


Organization 
of  the 
Board 


History  of  the  Sanfrancisco 


Organization 
of  the 
Board 


Nevada  a  Territory  in  1860. 

Breaking  out  of  the  Civil  War  in  1861. 

California  was  settled  principally  by  mining 
men.  The  discovery  of  gold  induced  a  quarter 
of  a  million  people  to  rush  to  the  diggings. 

They  came  from  every  portion  of  the  globe. 
During  the  first  few  years,  search  for  gold  was 
their  occupation;  agriculture  was  an  after- 
thought. Of  course,  placer  gold  was  first 
sought;  then  the  gold  quartz  mine  occupied 
attention,  so  that  when  the  Comstock  Lode  was 
discovered  in  1859  the  improvement  in  mining 
was  such  that  the  old-fashioned  arrastra  had 
given  place  to  mills  that  crushed  the  ore  and 
concentrated  the  metal. 

In  1859,  two  men  discovered  on  the  east  side 
of  Mount  Davidson  the  Comstock  Lode — the 
greatest  yet  discovered. 

Mining  is  of  such  a  fascinating  nature  to 
some  men,  that,  in  the  hope  of  discovering 
another  Comstock  lode,  they  will  spend 
months,  years,  yes,  a  lifetime,  in  its  pursuit. 
As  experience  brings  wisdom  to  the  prospector, 
he  gradually  corrects  mistakes  and  overcomes 
failures.  He  is  able  to  abandon  what  his 
judgment  confirms  as  useless  labor,  and,  in  the 
end,  when  rewarded  by  a  ledge  of  pay  ore,  he 
jumps  in  a  day  from  an  ordinary  prospector 
to  a  possible  millionaire. 

A  large  population  rushed  to  the  new 
[2] 


Stock  and  Exchange  Board 


bonanza  of  the  Comstock,  then  in  the  western 
portion  of  Utah,  now  the  State  of  Nevada. 
Virginia  City,  Gold  Hill,  Silver  City,  and  Day- 
ton were  quickly  settled.  Prospectors,  in  hope 
of  further  discoveries,  were  soon  searching 
for  mines  further  east.  Almost  every  one  made 
money  at  first.  Then  the  owners  of  mining 
locations  incorporated  them  and  issued  certifi- 
cates of  stock,  and  stock  speculation  com- 
menced. There  were  in  San  Francisco  a  num- 
ber of  brokers  buying  and  selling  other  than 
mining  stocks,  such  as  City  Scrip,  California 
Navigation  Co.,  Insurance,  Wharf,  Gas,  Rail- 
road, Steamboat,  Telegraph,  Water  stocks, 
etc.,  etc.  Among  these  the  following  will  be 
found  in  the  Directory  for  1862  as  "brokers 
and  money  brokers": 

Geo.  C.  Hickox,  Z.  Holt,  A.  J.  King,  H.  C. 
Logan,  E.  P.  Peckham,  John  Perry,  Jr.,  L. 
Ritter,  T.  C.  Sanborn,  C.  H.  West,  L.  Sloss, 
C.  Sutro,  W.  Sharon,  F.  Vassault,  F.  H.  Woods. 

These  brokers  soon  received  orders  to  buy  or 
sell  shares  or  feet  in  the  new  mining  locations. 
Their  offices  were  located  principally  on  Mont- 
gomery street,  between  California  and  Wash- 
ington, and  in  the  cross  streets  adjacent  to 
Montgomery.  On  receiving  orders,  they  would 
leave  their  offices,  hunt  up  the  other  brokers 
who  might  have  received  other  orders,  and 
effect  purchases  or  sales. 

[3] 


Organisation 
of  the 
Board 


History  of  the  SanFrancisco 


Organization 
of  the 
Board 


In  this  informal  manner,  prices  were  not  at 
all  regular  nor  uniform,  changing  almost  at 
will,  and  in  some  cases  giving  dissatisfaction. 
Out  of  all  this  confusion  came  the  idea  of  form- 
ing a  mining  stock  board,  or  a  place  where,  at 
a  fixed  time,  brokers  could  meet,  and  sellers  and 
buyers  could  gradually  arrive  at  a  fixed,  posi- 
tive price  for  their  stocks,  which  would  be  so 
satisfactory  that  other  transactions  could  be 
made,  based  upon  the  Board  sales.  The  inno- 
vation did  not  meet  with  immediate  favor  and 
success.  In  the  first  sessions  of  the  Board, 
sales  were  few,  and  all,  brokers  and  customers 
alike,  cautious,  apparently  waiting  to  ascertain 
the  efficacy  of  the  enterprise. 

The  San  Francisco  Stock  and  Exchange 
Board  was  organized  on  the  date  given  with 
forty  members. 

Officers:  President,  J.  B.  E.  Cavallier;  Vice- 
President,  John  Perry,  Jr. ;  Secretary,  Franklin 
Lawton;  Treasurer,  H.  Schmiedell. 

Another  Board,  the  San  Francisco  Board  of 
Brokers,  was  organized  April  15,  1863;  num- 
ber of  members,  eighty;  rooms,  430  Mont- 
gomery street. 

Officers:  President,  Samuel  Purdy;  Vice- 
President,  J.  D.  Stevenson;  Secretary,  M.  G. 
Elmore;  Treasurer,  W.  K.  Gallagher. 

Still  another  Board,  the  Pacific  Board  of 
Brokers,  was  organized  July,  1863,  the  number 

[4] 


•••I  1 


3H3HW    3HTA3HT    HATIJOqOSIT3M     CLIO 
^^81    MI   2HOI8333   8TI   QJ3H    OHAOH   3HT 


ases 


of  all  this  confusion  came  th 
ing  a  mining  stock  board,  or  a  place  whei 
a  fixed  t;.  ,eller! 

dually  arrh 


J.  1IC 


is  of  th< 


•<;  anri  n 


. 


Board  was  organized  on  the  da 

memb< 

OB  esident,  J.  B.  E.  Cavallier;  Vice- 

;  Secretary,  Franklin 


President,  J*  D 
Elmore;    Treasurer,  > 
Still   another  Boarc 


M.  G. 


toard  oi 


OLD     METROPOLITAN    THEATRE    WHERE 
THE    BOARD    HELD   ITS   SESSIONS   IN    1865 


Stock  and  Exchange  Board 


of  members  being  forty.  This  board  had  rooms 
at  606  Washington  street. 

Officers:  President,  James  Kitchens;  Vice- 
President,  W.  P.  Denckler;  Secretary,  James 
H.  Gager;  Treasurer,  T.  D.  Mathewson. 

The  cautious,  staid,  conservative  business 
men  of  San  Francisco  were  not  at  first  in  favor 
of  the  San  Francisco  Stock  and  Exchange 
Board,  or  its  speculative  stocks.  In  fact,  if  a 
down-town  merchant  was  known  to  be  buying 
or  selling  these  new  mining  securities  his  com- 
mercial credit  was  instantly  lowered;  his 
bankers  would  probably  refuse  to  loan  him 
money,  and  the  wholesale  merchants  decline 
to  credit  him. 

In  October,  1862,  the  commercial  columns 
of  "The  Bulletin,"  a  San  Francisco  evening 
journal,  contained  a  report  of  the  failure  of  a 
liquor  merchant,  with  the  sarcastic  comment 
"that  it  was  reported  he  had  been  gambling  in 
Washoe  stocks," 

In  fact,  as  there  were  just  forty  members  of 
the  San  Francisco  Stock  and  Exchange  Board, 
the  old  story  in  the  Arabian  Nights  of  AH 
Baba  and  the  Forty  Thieves  was  revived,  and, 
in  polite  society,  when  one  of  the  members 
appeared  he  was  alluded  to  as  old  Ali  Baba 
himself.  John  C.  Heenan  would  probably  have 
resented  so  doubtful  a  compliment,  but  the 
originators  of  this  new  idea,  of  trading  in 
[5] 


Organization 
of  the 
Board 


Organisation 
of  the 
Board 


History  of  the  SanFraneisco 


stocks,  were  compelled  to  wait  and  bide  their 
time.  It  is  said  the  idea  of  forming  the  Board 
originated  with  Franklin  Lawton  and  Elisha 
W.  Teacle,  who  had  acted  as  brokers  on  the 
New  York  Board. 

The  original  membership  of  the  San  Fran- 
cisco Stock  and  Exchange  Board  included  the 
following : 

20.  Mayer,  Simon 

21.  Perry,  John,  Jr. 

22.  Page,  Robt.  C. 

23.  Parker,  W.  C. 

24.  Pixley,  Frank 


1.  Abbott,  O. 

2.  Barclay,  Geo.  R. 

3.  Bruce,  S.  C. 

4.  Brewster,  R.  E. 

5.  Cavallier,  J.  B.  E. 

6.  Critcher,  Henry 

7.  Cornwall,  P.  B. 

8.  Chappelle,  A.  M. 

9.  Dupre,  E. 

10.  Grant,  Joseph 

11.  Garrison,  W.  K. 


25.  Sanborn,  T.  C. 

26.  Schmiedell,  Henry 

27.  Shipley,  A. 

28.  Sinton,  R.  H. 

29.  Smith,  Chas.  K. 

30.  Teacle,  Elisha  W. 


12.  Heydenfeldt,  Solomon  31.  Talbert,  T.  A. 


13.  Hyman,  P.  C. 

14.  Higgins,  W.  L. 

15.  Henriques,  David 

16.  Logan,  H.  C. 

17.  Lawton,  Franklin 


32.  Van  Lokeran,  A. 

33.  Wakelee,  C.  H. 

34.  Watson,  N.  A. 

35.  Williams,  D.  C. 

36.  Wakelee,  H.  P. 

18.  Lawton,  Wm.  Wilson  37.  Wilson,  J.  D. 

19.  Marina,  E.  J.  de  Santa 
Three  names  are  missing. 

(From  "Mines,  Men  and  Money.")    The  fol- 
lowing was  signed  by  the  members : 

San  Francisco,  Sept.  i,  1862. 
For  the  purpose  of  facilitating  the  purchase 
or  sale  of  stock,  and  mutual  security,  we,  the 
[6] 


Stock  and  Exchange  Board 


undersigned,  propose  to  organize  a  San  Fran- 
cisco Stock  Exchange,  on  the  plan  of  the 
New  York  Stock  and  Exchange  Board,  in 
furtherance  of  which  object  we  do  each  agree 
to  pay  into  the  hands  of  the  Treasurer,  when 
chosen,  the  sum  of  $100. 

The  meeting  called  for  the  purpose  of  organ- 
izing the  Stock  Board  was  held  on  the  8th  of 
September,  1862,  at  the  office  of  J.  B.  E.  Caval- 
lier,  R.  C.  Page,  Joseph  Grant  and  Samuel 
Bruce,  who  were  then  engaged  in  the  real 
estate  and  general  brokerage  business  at  428 
Montgomery  street. 

San  Francisco,  at  the  time,  had  a  population 
of  about  75,000.  The  Central  Pacific  Railroad 
Company  had  just  begun  to  lay  its  rails.  There 
was  a  railroad  between  Folsom  and  Sacra- 
mento; also  one  between  San  Francisco  and 
San  Jose.  Telegraph  wires  extended  from  San 
Francisco  to  a  few  interior  towns.  The  Tele- 
graph Company  was  about  to  build  across  the 
continent. 

Our  news  of  the  Civil  War  came  by  steamer 
from  New  York,  via  Panama,  and  also  by  over- 
land stage  mail.  Money  was  worth  three  per 
cent  a  month.  Quick  news  from  the  East  was 
brought  by  the  Pony  Express  at  $5  a  letter, 
written  on  thin  tissue  paper. 

Neither  the  district  telegraph  nor  the  tele- 
phone had  ever  been  dreamed  of.  California 

[7] 


Organization 
of  the 
Board 


flistory  of  the  SanFrancisco 


Organisation 
of  the 
Board 


had  adhered  to  the  gold  basis,  while  in  the 
East,  currency  or  greenbacks,  as  they  were 
then  called,  was  the  basis  of1  exchange,  and 
gold  was  at  a  high  premium  there. 

The  dummy  on  Market  street  had  about  car- 
ried away  all  the  sand  hills  above  Kearny 
street,  and  street  cars  were  running  out  to 
Hayes  Park  at  Laguna  and  Hayes  streets.  The 
Omnibus  railroad  was  running  from  North 
Beach  to  South  Park,  two  horses  drawing  the 
cars,  and  where  hills  were  to  be  climbed,  extra 
horses  were  utilized. 

These  events  show  that  San  Francisco  was 
just  beginning  to  assume  a  metropolitan 
growth,  and  a  new  enterprise  like  the  Stock 
Board  could  not  possibly  meet  with  the  success 
that  it  would  today. 

(All  of  the  records  of  the  Board  were  de- 
stroyed in  the  great  four  days'  fire  succeeding 
the  earthquake  of  April  18,  1906,  and,  while 
many  of  these  events  here  described  are  from 
memory,  still,  some  old  books  and  papers,  pre- 
served from  the  fire,  at  least  fix  dates  of  the 
events.) 

"Mines,  Men  and  Money"  is  authority  for 
the  statement  that  Franklin  Lawton,  T.  C. 
Sanborn,  E.  J.  de  Santa  Marina,  Henry  Schmie- 
dell,  John  Perry,  Jr.,  and  E.  W.  Teacle  aided 
Cavallier,  Page,  Grant  and  Bruce  in  organ- 
izing the  Board. 

[8] 


Stock  andExchangeBoard 


On  September  n,  1862,  the  members  adopted 
a  constitution  and  elected  officers,  and  on  Sep- 
tember 12  adopted  by-laws. 

A  daughter  of  Joseph  Bates  says  that  her 
father  drew  up  the  constitution  that  was 
adopted,  and,  as  he  was  an  Englishman,  the 
articles  were  more  in  accordance  with  the  Lon- 
don Stock  Exchange  than  with  those  of  the 
New  York  Stock  Exchange,  as  is  claimed  by 
others.  In  any  event,  the  Board,  from  its 
organization,  has  always  held  its  proud  posi- 
tion as  the  Board  of  the  Pacific  Coast  and  fore- 
most mining  board  of  the  world. 

The  fee  on  joining  was  placed  at  $100,  but 
the  members  only  paid  $50  each,  making  a 
fund  of  $2,000.  They  rented  a  room  in  the 
Montgomery  Block  and  proceeded  to  business. 

On  December  14,  1908,  I  received  a  letter 
from  P.  C.  Hyman,  the  last  survivor  of  the 
original  forty  charter  members,  in  which  he 
writes : 

"I  am  reminded  of  a  few  reminiscences  when 
we  first  assembled  for  business.  We  met  in  a 
small  room,  third  story  of  the  Bank  Exchange 
Building,  with  a  long  table  in  the  center  and 
seats  on  each  side.  Mr.  Teacle  and  Franklin 
Lawton  were  the  only  two  who  had  had  experi- 
ence in  the  Stock  Board,  both  being  members 
of  the  New  York  Board.  Mr.  Teacle  was  made 
Chairman  and  Mr.  Lawton  Secretary.  The 

[9] 


History  of  the  Sanfrandsco 


Organization 
of  the 
Board 


first  two  days  we  made  no  sales.  The  third 
day,  Mr.  P.  B.  Cornwall  and  I  arranged  to  do 
some  business.  I  bought  from  him  two  pur- 
chases, five  shares  each,  Wide  West,  and  one 
purchase,  Real  Del  Monte,  of  five  feet,  being 
the  first  records  made.  From  that  time  some- 
thing was  done  every  day  until  business  so 
increased  that  we  secured  a  larger  place,  second 
story,  Rios  Building,  corner  Washington  and 
Montgomery  streets.  It  still  increased,  and  we 
were  compelled  to  arrange  for  a  larger  room, 
so  we  got  the  Metropolitan  Theatre  Company 
to  build  us  a  large  room,  second  floor,  on  Mont- 
gomery street. 

"We  each  paid  $100.00  cash  for  just  forty 
seats,  $250.00  for  the  next  ten,  $500.00  for  the 
next  ten,  and  $1000.00  for  the  next  twenty 
seats.  It  was  our  intention  to  use  the  proceeds 
from  the  last  twenty  seats  sold,  for  the  pur- 
chase of  a  lot,  and  build  a  hall  of  our  own.  At 
that  time  the  merchants  were  building  on  Cali- 
fornia street,  and  suggested  that  we  take  stock 
of  $20,000  in  their  building.  We  had  a  great 
contest  over  it — to  build  or  take  stock.  I  fought 
for  buying  a  lot  and  erecting  our  own  building. 
The  merchants  won ;  they  built  us  a  large  room 
on  the  third  floor,  which  was  not  satisfactory, 
and  we  soon  moved  to  Alsop's  Building  on 
California  street." 

Col.  P.  C.  Hyman  arrived  in  San  Francisco 
[10] 


Stock  and  Exchange  Board 


in  December,  1849,  and  soon  became  well 
known  among  mining  men.  On  the  organiza- 
tion of  the  Board  he  was  one  of  its  most  en- 
thusiastic members,  and  has  always  retained 
a  lively  interest  in  its  prosperity.  His  com- 
munication above  is  extremely  valuable,  de- 
scribing, as  it  does,  the  timidity  and  reluctance 
that  characterized  transactions  among  early 
members.  Such  an  attitude  disappeared  as 
familiarity  with  Board  transactions  increased 
and  business  improved,  so  that,  as  full-fledged 
brokers  with  well  filled  order-books,  the  above 
traits  gave  place  to  emulation  as  to  who 
should  execute  orders  best.  Too  much  praise 
cannot  be  given  Mr.  Hyman  and  his  asso- 
ciates for  the  confidence  they  won  as  brokers. 
The  customs  and  rules  they  so  well  established 
are  followed  and  lived  up  to  today  by  their 
successors. 

It  is  only  right  to  add  that,  in  his  old  age, 
Mr.  Hyman  has  again  become  successful  in 
developing  a  valuable  mine  near  Elko,  Nevada. 

A  copy  of  the  first  five  days'  transactions 
was  found  in  the  copper  box  laid  in  the  founda- 
tion stone  of  the  San  Francisco  Stock  and 
Board's  Exchange  building  on  Pine  street.  It 
was  a  photograph  from  the  old  Record  Book, 
taken  by  Thomas  M.  Blair,  the  old  Sergeant  at 
Arms,  and  is  reproduced  in  this  volume  as 
a  full-page  illustration.  Here  it  is: 


Organization 
of  the 
Board 


History  of  the  Sanfrancisco 


M 


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Organisation 
of  the 
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[12] 


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FACSIMILE  OF  PAGE  OF  RECORD  OF  FIRST 
FIVE  DAYS'  TRANSACTIONS  OF  THE  BOARD 


Stock  and  Exchame  Board 


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Organisation 
of  the 
Board 


[13] 


History  of  the  Sanfrancisco 


Organization 
of  the 
Board 


Other  lists  published  30  years  ago  of  our 
first  five  days'  transactions  differ  from  the 
above,  but  the  list  here  published  is  authentic. 

The  Mining  and  Scientific  Press  publishes 
this  article,  October  7,  1862,  as  an  extract  from 
the  Call: 

"STOCK  AND  EXCHANGE  BOARD.— A 
regular  Stock  Brokers'  Board,  upon  the  same 
general  plan  as  those  of  the  older  cities  of  the 
Eastern  States,  has  been  formed  in  this  City. 
The  necessity  for  such  an  organization  in  San 
Francisco  at  present  does  not  seem  to  be  very 
urgent,  but  the  rapid  increase  of  stock  com- 
panies warrants  the  belief  that  the  Stock 
Brokers  may  have  enough  to  do  hereafter.  The 
officers  of  the  Board  are:  President,  J.  B.  E. 
Cavallier;  Secretary,  Franklin  Lawton;  Vice- 
Pres.,  E.  W.  Teacle;  Treasurer,  Henry  Schmie- 
dell." 

On  October  15,  1862,  the  Bulletin  first  pub- 
lished a  report  of  the  transactions  in  the  Board. 
Before  the  close  of  the  year  1862  all  of  the 
papers  were  publishing  the  lists  of  purchases 
and  sales,  and  new  mining  companies  were 
being  incorporated  so  rapidly  that  long  lists 
of  these  companies  were  also  published. 

The  excitement  in  stock  speculation,  subse- 
quent to  the  organization  of  the  Board,  was  so 
great  that  other  boards  of  brokers  were  or- 
ganized in  this  city  and  at  other  points  on  the 


Stock  and  Exchange  Board 


coast,  notable  among  them  being  the  San 
Francisco  Board  of  Brokers  and  the  Pacific 
Board  of  Brokers. 

The  reason  for  the  organization  of  the  other 
Boards  in  San  Francisco,  as  given  in  the  news- 
papers of  that  date,  was  because  of  the  high 
prices  of  seats  in  the  original  Board,  their  entry 
price  being  $100,  then  $250,  and  on  April  15, 
1863,  when  the  San  Francisco  Board  of  Brokers 
organized,  $500. 

The  San  Francisco  Stock  and  Exchange 
Board  was  known  in  street  parlance  as  the 
first  Board;  the  other  two  were  known  as  the 
second  and  third  Boards.  An  advertisement 
of  Thomas  Hill  calls  attention  to  his  being  a 
member  of  the  first  Board.  H.  S.  Saunders  & 
Co.  advertised  similarly.  The  papers  an- 
nounced that  on  April  20,  1863,  the  second  and 
third  Boards  effected  a  consolidation. 

Other  Boards  formed  were : 

March  23,  1863,  Stock  Board  in  Sacramento. 

March  23, 1863,  Stock  Board  in  Virginia  City. 

February  6,  1864,  Stock  Board  in  Gold  Hill. 

May,  1864,  Pioneer  Stock  Board  at  Reese 
River. 

On  May  7,  1864,  the  Gold  Hill  Board  quit, 
and  on  June  18,  1864,  the  Virginia  Stock  Mar- 
ket died.  At  this  date  the  Washoe  Stock  Ex- 
change was  the  only  Board  left  in  Nevada 
Territory. 

[IS] 


Organisation 
of  the 
Board 


History  of  the  SanFrandsco 


All  of  these  boards  were  great  feeders  for 
the  San  Francisco  Stock  and  Exchange  Board, 
sending  it  orders  for  thousands  of  shares. 

The  increase  of  business  soon  warranted  the 
big  San  Francisco  Board  in  obtaining  larger 
accommodations,  and  it  moved  to  a  room  fitted 
up  for  it  at  the  southwest  corner  of  Mont- 
gomery and  Washington  streets.  The  year 
1862  closed  very  favorably  for  the  Board,  and 
the  members  felt  well  satisfied  with  their  ef- 
forts. 


Organization 
of  the 
Board 


[16] 


ADDITIONAL  EARLY  HISTORY 


History  of  the  Sanfraneisco 
Stock  and  Exchange Board 


CHAPTER  II 
ADDITIONAL  EARLY  HISTORY 


ISTORY  records  the  fact 
that  from  the  earliest  set- 
tlements of  our  ancestors 
on  the  Atlantic  Coast  to 
the  present  time,  each  gen- 
eration of  men  produces  a 
number  of  adventurous 
spirits  that  long  to  change 
the  hum-drum  of  ordinary 
life,  in  a  civilized  community,  for  the  more  ex- 
citing events  to  be  encountered  in  the  perils 
and  adventures  sure  to  follow  a  life  in  the 
farther  West.  It  is  to  this  feeling  that  our 
country  owes  the  rapid  emigration  to,  and 
settlement  of,  the  western  fields  following  the 
Revolutionary  War  and  the  War  of  1812. 

When  California  was  added  to  the  Union  the 
same  spirit  sent  to  us  grand  specimens  of  the 
generation  of  men  born  from  1820  to  1840.  The 
early  members  of  our  Board  were  made  men 
of  character,  quick  in  decision  and  self-reliant,     Additional 
and  all  this  earlier  in  life  than  their  comrades     Early  History 
who  remained  at  home.    And,  although  un- 


History  of  the  SanRrmcisco 


Additional 
Early  History 


conscious  of  the  fact,  they  were  making  history 
for  San  Francisco  and  the  Coast. 

Their  effort  proving  so  successful,  and  there 
being  a  demand  for  seats  in  the  Exchange,  they 
concluded  to  increase  the  membership  from  40 
to  80  members,  by  selling  40  additional  seats, 
the  purchase  price  for  the  new  seats  to  be 
placed  in  the  Treasury  of  the  Board.  Referring 
to  previous  items  it  will  be  seen  that  the  first 
10  seats  sold  for  $250.00  each,  the  next  10  for 
$500.00  each,  and  the  next  20  for  $1000.00  each. 

It  is  said  by  old  members  that  the  sales  of  the 
new  seats  did  not  interfere  with  the  selling  and 
transfer  of  seats  from  old  to  new  members. 
The  demand  was  so  great  that  by  October, 
1863,  the  Board  numbered  80  members.  Money 
was  not  so  plentiful  45  years  ago  as  at  present, 
and  $500  to  $1000  seemed  to  many  a  good 
profit  on  the  original  investment  of  $50,  and 
many  transfers  of  seats  were  recorded. 

At  the  organization  in  September,  1862,  Mr. 
David  Henriques  was  so  enthusiastic  as  to  the 
future  of  the  Board,  that  he  willingly  loaned 
several  members  the  $50  necessary  for  their 
entry  to  the  Board.  This  fact  was  published 
April  24,  1874,  in  the  Mining  and  Scientific 
Press,  the  price  at  the  latter  date  being  $10,000 
to  $12,000  for  a  seat. 

The  incorporation  of  new  mining  companies, 
both  in  Nevada  and  California,  kept  pace  with 
[20] 


Stock  and  Exchange  Board 


the  increased  business,  and  the  newspapers 
published  increased  lists  of  mining  corpora- 
tions. 

Failures  in  the  new  enterprise  were  fre- 
quent, but  the  delinquent  would  find  means  in 
some  way  to  settle  with  his  creditors  in  the 
Board,  and  resume  business.  They  tell  the 
story  of  one  broker  with  whom  to  fail  was 
chronic.  After  each  failure,  he  would  make 
some  sort  of  a  settlement,  his  creditors  trust- 
ing him  to  some  extent,  and  each  time  he  re- 
sumed it  would  be  in  a  new  and  different  of- 
fice from  the  last  disastrous  one.  In  fact,  on 
one  of  these  many  failures  he  was  making  such 
satisfactory  progress  towards  a  settlement, 
that  he  commenced  furnishing  a  new  office, 
but,  unfortunately,  "busted"  again  before  his 
desks  and  chairs  could  be  placed  in  position. 
Real  Del  Monte  stock  caused  many  failures  in 
1864. 

A  custom,  which  soon  became  a  rule  in  the 
Board,  was  as  follows:  As  soon  as  a  member 
failed  he  placed  his  affairs  in  the  hands  of 
Franklin  Lawton,  Secretary,  who  would  en- 
deavor to  make  a  settlement  with  the  creditors ; 
but,  if  unsuccessful,  would  finally  sell  the  seat, 
and  divide  the  proceeds  among  the  creditors 
in  the  Board.  This  system  became  eventually  Additional 
embodied  in  the  Constitution  and  By-Laws.  Early  History 

On  the  breaking  out  of  the  Civil  War  the 
[21] 


History  of  the  Sanlrancisco 


Government  stopped  specie  payments  and 
issued  currency,  which  was  a  legal  tender 
throughout  the  Union.  California,  and  the 
other  Pacific  States,  adhered  to  the  gold  basis, 
and  continued  to  do  so  up  to  the  resumption  of 
specie  payments  by  the  Government  on  Janu- 
ary i,  1879,  and  notes  and  drafts  were  made 
payable  in  United  States  gold  coin.  United 
States  currency  sold  as  low  as  35  cents  in  San 
Francisco  in  1864,  and  in  October,  1864,  gold 
sold  in  New  York  at  222,  and  in  December, 
1864,  at  231.  At  the  banks  money  was  worth 
lYz  to  2  per  cent  a  month.  Among  brokers  2 
to  3  per  cent  was  often  paid. 

A  copy  of  the  prices  of  the  various  stocks 
listed  on  the  Board  for  January  9,  1864,  will 
be  found  on  the  following  pages: 


Additional 
Early  History 


[22] 


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£hout   the    Union.    Ca  c  ^ 

Pacific  States,  adhered  to  the  g 
and  continued  to  do  so  up  to  the  resumption 
specie  payments  by  the  Go  t  on  Janu- 

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. 


the  banks  money  was 
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locks 
be  found  on  the  follov; 


OFFICERS  OF  THE  BOARD  IN  1872— HENRY 
SCHMIEDELL,  E.  P.  PECKHAM,  B.  HOWARD 
COIT,  GEO.  W.  SMILEY,  FRANKLIN  LAWTON 


Stock  and  Exchange  Board 


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Additional 
Early  History 


[23] 


History  of  the  SanFrancisco 


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[24] 


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Additional 
Early  History 


[27] 


ORGANIZATION  OF  EARLY 
BANKS 


History  of  the  Sanfrancisco 
Stock  andExchangeBoard 

CHAPTER  III 
ORGANIZATION    OF    EARLY    BANKS 


HE  organization  of  the 
||  Bank  of  California,  June 
20,  1864,  was  a  great  boon 
to  brokers,  and  the  follow- 
ing banking  firms  proved  an 
aid:  John  Sime  &  Co., 
Sather  &  Co.,  Tallant  & 
Co.,  Wells,  Fargo  &  Co., 
Donohoe,  Kelly  &  Co.,  and 
the  London  &  San  Francisco  Bank.  The 
last  named  bank  was  organized  on  August 
i,  1865,  with  Milton  S.  Latham  as  Mana- 
ger. Many  brokers  had  accounts  with  this 
bank.  Mr.  Latham  was  called  the  22  per 
cent  manager,  as  that  was  the  dividend  de- 
clared by  the  bank  as  profits  for  its  first  year. 
Belloc  Freres,  and  B.  Davidson,  with  Albert 
Gansl  as  Manager,  were  also  important  bank- 
ing houses. 

In  August,  1864,  a  stock  circular  of  Asso- 
ciated Brokers  of  the  San  Francisco  Stock 
and  Exchange  Board  was  issued  and  continued 
until  Jan.  i,  1870.  Many  of  the  brokers  sub- 


Organisation  of 
Early  Banks 


History  of  the  SanFraneisco 


Organization  of 
Early  Banks 


scribed  to  this  circular  and  distributed  them 
to  their  clients. 

On  July  15,  1865,  the  Board  adopted  a  new 
schedule  of  commissions,  and  in  December, 
1865,  passed  rules  expelling  a  member  for 
doing  business  under  the  regular  rates  of  com- 
mission. 

In  the  early  days  of  its  existence  the  Board 
transacted  a  large  business  in  local  stocks  and 
in  the  buying  and  selling  of  currency.  It  was 
not  unusual  to  make  sales  of  $10,000  to  $20,000 
in  currency  on  one  order. 

On  Dec.  15,  1866,  stockholders  were  made 
happy  by  the  following  dividends :  Empire,  $15 
per  share ;  Yellow  Jacket,  $75  per  foot ;  Hale  & 
Norcross,  $200  per  foot,  in  addition  to  the 
regular  monthly  dividend  of  $100  per  foot. 

In  1865  and  1866,  Mr.  Adolph  Sutro  obtained 
rights  from  the  State  of  Nevada  and  Congress 
and  began  the  enterprise  known  as  the  "Sutro 
Tunnel."  Although  this  has  been  of  the 
greatest  importance  to  the  Comstock  Lode,  it 
was  at  first  bitterly  opposed  by  many  con- 
nected with  the  mines  on  the  Comstock,  prin- 
cipally because  it  imposed  a  tax  per  ton  on 
ores  extracted  from  the  Lode;  but  Mr.  Sutro 
overcame  all  opposition  and  the  Sutro  Tunnel 
was  eventually  completed  in  1878. 

In  April,  1867,  the  Board  passed  its  first  rules 
concerning  time  sales.  The  Board  had  moved, 
[32] 


Stock  and  Exchange  Board 


as  Mr.  Hyman  has  stated,  to  the  Metropolitan 
Theatre  building  further  north  on  Montgomery 
street,  near  Jackson.  It  remained  in  these 
rooms  until  June  i,  1867,  when  it  moved  to 
rooms  in  the  New  Merchants  Exchange  Build- 
ing on  California  street,  in  which  building,  as 
is  seen  by  Mr.  Hyman's  statement,  the  Board 
had  taken  $20,000  in  stock.  It  was  the  first 
organization  to  transact  business  in  that  mag- 
nificent building. 

In  September,  1867,  the  regular  meetings 
were  at  u  A.  M.  and  3  P.  M.  In  order  to 
facilitate  business  the  Board  permitted  in- 
formal sessions — in  the  morning  from  10:15  to 
10:45,  and  in  the  afternoon  from  2:15  to  2:45. 
There  were  dull  spells  at  times,  and  then  the 
papers  chronicled  a  decline,  and  finally  what 
they  would  call  a  panic.  And  immediately  the 
market  would  rebound,  and  prices  soar  again. 
October  26,  1867,  the  papers  chronicle  the  price 
of  Hale  and  Norcross  at  $650,  a  gradual  de- 
cline from  $3600. 

The  officers  elected  January  i,  1867,  were: 
President,  J.  B.  E.  Cavallier;  Vice-Pres.,  A.  H. 
Lissak,  Jr.;  Caller,  George  W.  Smiley;  Secre- 
tary, Franklin  Lawton;  Treasurer,  Henry 
Schmiedell. 

The  business  during  the  year  1867  was  large. 
The  Mining  and  Scientific  Press  gives  the  fol- 
lowing figures:  Sales  for  October,  $8,051,329; 
[33] 


Organization  of 
Early  Banks 


History  of  the  Sanfrancisco 


sales  for  November,  $5,351,733.  Previous  years 
1864,  $45,600,000;  1865,  $23,600,000;  1866,  $38, 
000,000;  1867,  $70,948,012. 

YIELD   OF  SEVERAL   MINES,   1867 

Hale  &  Norcross $1,097,297.45 

Savage  3,737,100.12 

Crown  Point 920,717.90 

Yellow  Jacket  1,729,276.91 

Gould  &  Curry 614,620.51 

Chollar  Potosi 2,668,885.36 

Empire 278,607.17 

Imperial 1,106,495.50 

Confidence   142,049.46 

Ophir  4,108.00 

Kentuck    1,140,741.94 

Gold  Hill  Quartz  M.  &  M. 

Co 106,399.42 

Overman  .  192,318.17 


$13,739,617.91 


Organization  of 
Early  Banks 


[34] 


HALE  &  NORCROSS  CORNER 


History  of  the  Sanfrandsco 
Stock  and  Exchange  Board 


CHAPTER  IV 
HALE    &    NORCROSS    CORNER 


HE  year  1868  opened  with 

a   contest   for   the   control 

of   Hale    &    Norcross,   be- 
tween Charles  L.  Low  and 

what  was  called  the  "Bank 

Crowd,"    meaning    friends 

of  the  Bank  of  California, 

with  a  continued  buying  of 

the  stock.  February  8th,  it 
sold  at  $2925.  February  15th  it  had  jumped  to 
$7100.  A  number  of  members  were  caught 
short  on  this  stock,  and  what  made  it  particu- 
larly uncomfortable  was  that  the  contesting 
parties  held  tightly  every  foot  they  bought 
and  would  not  loan  stock  to  their  friends  that 
were  caught  short. 

Several  executive  sessions  of  the  Board  were 
held,  at  which  the  shorts  pleaded  for  legisla- 
tion in  their  behalf;  but  there  were  the  Con- 
stitution and  rules  of  the  Board  that  the  ma- 
jority  were   determined  to   uphold.    The   in-      na\e  &  Norcross 
genious    argument    was    presented    that    they      Corner 
knew  of  at  least  five  feet  more  than  the  whole 

[37] 


History  of  the  Sanfrandsco 


Hale  &  Norcross 
Corner 


capital  stock  having  been  sold — an  illegal  act. 
You  could  not  sell  what  did  not  exist.  But  it 
was  no  use — the  Constitution  must  be  upheld. 
The  shorts  were  given  to  understand  that  the 
Board  would  help  them  if  possible,  but  it  must 
be  done  in  an  honorable  manner. 

Finally  Secretary  Frank  Lawton,  a  former 
member  of  the  New  York  Board,  suggested 
privately  to  one  of  the  shorts,  that  at  the  ses- 
sion on  the  following  morning,  when  the  price 
had  been  positively  fixed  by  a  sale,  the  short 
seller  should  influence  his  friends  to  have  the 
stock  stricken  temporarily  from  the  list,  and 
thus,  there  being  no  more  official  Board 
records  as  to  price,  the  shorts  would  not  be 
compelled  to  put  up  any  more  margin  money. 
This  would  certainly  assist  those  whose  con- 
tracts fell  due  subsequent  to  the  annual  elec- 
tion of  the  Company,  and  would  be  of  great 
assistance  to  the  worried  short  who  had  to 
deliver  before  the  election. 

McDonald  &  Whitney  were  short  one  foot 
in  their  office  and  two  feet  for  a  Virginia  City 
firm ;  William  Burling  and  F.  H.  Woods,  while 
not  short  themselves,  had  stock  coming  from 
shorts  which  they  were  compelled  to  deliver. 
How  those  poor  shorts  worried  and  wiggled. 
Whitney  knew  of  a  miner  in  Plumas  County 
who  owned  one  foot,  and  he  traveled  night  and 
day,  through  snow  and  ice,  on  stage-coach  and 
[38] 


Stock  and  Exchange  Board 


otherwise,  only  to  ascertain  on  arrival  that 
some  other  person  had  preceded  him  and  had 
obtained  the  stock. 

On  the  evening  of  the  day  that  Secretary 
Lawton  made  his  suggestion,  the  entire  short 
interest  in  Hale  &  Norcross,  with  quite  a  num- 
ber of  influential  members,  met  at  Mark  L. 
McDonald's  residence.  The  shorts  were  ready 
to  pay  anything  in  reason,  say  $8,000  to  $10,000 
a  foot ;  but  when  one  was  short  at  $500  to  $600 
a  foot — to  pay  $50,000  a  foot  was  a  shame  and 
a  sin  too.  When  you  invite  a  friend  to  your 
own  parlor,  and  in  front  of  your  own  fire-place, 
with  the  other  necessary  adjuncts,  and  plead 
with  him,  if  he  is  a  gentleman  he  will  yield  to 
you,  especially  after  he  is  well  warmed  up. 

And  so  the  papers  of  that  date  chronicle  the 
fact  that  the  shorts  took  drastic  measures.  On 
February  226.  the  Hale  and  Norcross  stock 
was  suspended  from  the  list,  the  reason  given 
being,  according  to  the  Mining  and  Scientific 
Press : 

"Owing  to  the  stock  being  at  present  held 
for  election  purposes." 

The  last   record   had   been   at  $8,000,   but 
$12,000  was  readily  paid  off  the  Board  and  even 
much  higher  bids  were  reported.    And  then 
arose  this  proverb  or  truism:     "When  giants     fjale  &  Norcros. 
are  striving  for  the  mastery,  it  is  wiser  for     Corner 
the  small  fry  to  stand  on  one  side." 

[39] 


History  of  the  SanFrancisco 


lale  &  Norcross 
Corner 


It  was  reported  that  a  prominent  banker  had 
three  feet  on  deposit  belonging  to  an  absent 
person.  The  influence  of  one  of  the  contestants 
was  such  that  they  obtained  the  three  feet, 
which  gave  them  the  control,  and  everybody 
seemed  happy ;  when  lo  and  behold,  the  owner 
of  the  three  feet  suddenly  returned  to  the  city, 
and  demanded  the  stock,  and  then  there  was 
something  doing.  The  brokers  were  glad  they 
were  not  in  that  particular  fight.  The  matter 
was  settled. 

An  Open  Board,  in  existence,  with  its  office 
also  on  the  Merchants  Exchange,  held  a  daily 
session,  at  which  these  stocks  were  bought  and 
sold.  The  Chairman,  T.  C.  Sanborn,  would 
announce  every  morning  that  he  was  author- 
ized to  bid  $100,000  for  10  feet  of  Hale  & 
Norcross. 

The  election  occurred  March  12,  1868,  on 
which  day  the  stock  sold  at  $2900.  The  Bank 
crowd  won  and  elected  the  following  trustees : 

Joseph  Barron,  Thomas  Bell,  Alvinza  Hay- 
ward,  George  L.  Mann,  M.  Morganthau, 
Thomas  Sunderland  and  George  Wallace. 

Early  in  1868  mineral  discoveries  had  been 
made  in  White  Pine  District,  Nevada,  and  at 
the  close  of  the  year  a  large  number  of  mines 
had  been  incorporated  and  listed  their  shares. 


[40] 


BOARD  RULES 


History  of  the  SanErandsco 
Stock  and  Exchange  Board 


CHAPTER  V 
BOARD   RULES 


T  its  organization  in  1862 
the  officers  of  the  Board 
consisted  of  a  president, 
vice  -  president,  secretary 
and  treasurer.  Among  the 
duties  assigned  to  the 
president,  or  in  his  absence 
the  vice-president,  was  the 
calling  of  stocks.  The  po- 
sition of  caller  was  not  then  created.  From 
this  arose  the  custom,  continued  for  many 
years,  of  addressing  the  presiding  officer 
as  "Mr.  President."  Mr.  J.  B.  E.  Cavallier, 
the  president,  called  the  list  until  1867, 
when  the  office  of  caller  was  created,  George 
W.  Smiley,  formerly  an  auctioneer,  being 
elected  to  fill  the  office.  The  roll  of  members 
was  called  each  morning.  At  first  the  session 
was  from  12  to  i  o'clock;  members  not 
answering  to  their  names  at  roll  call  were 
fined  25  cents.  Monthly  dues  were  $5.  After 
the  listed  stocks  were  called,  a  member  could  Board  Rules 
call  up  a  stock,  whether  listed  or  not,  by  pay- 

[43] 


.History  of  the  Sanfrancisco 


Board  Rules 


ig  a  fine  of  50  cents;  this  was  afterwards 
reduced  to  25  cents. 

On  the  regular  call  members  would  make 
their  bids  or  offers  to  sell,  as  each  stock  was 
called,  and  should  a  transaction  be  made  it 
became  the  duty  of  the  seller  to  call  the  trans- 
action to  the  president,  who  would  repeat  it 
to  the  secretary,  and  it  would  then  be  entered. 
The  secretary  could  not  enter  the  transaction 
until  the  presiding  ofHcer  announced  it  to 
him.  Should  there  be  a  dispute  as  to  who 
should  be  entitled  to  the  purchase  or  sale,  the 
presiding  officer  would  decide  the  matter,  giv- 
ing the  preference  to  those  who  made  the  first 
bid,  and  first  offer  to  sell,  at  the  price  the  trans- 
action was  made.  Gradually  custom  and 
experience  gave  consent  to  the  rules  that  now 
govern  the  actions  of  the  chairman  of  the 
Board.  A  suspended  member  was  allowed  a 
year  to  settle  with  his  creditors  in  the  Board, 
and  finally,  when  seats  became  of  great  value, 
his  seat  was  held  liable  for  all  debts  to  out- 
siders as  well  as  members.  In  1867  this  rule 
was  amended  whereby  the  delinquent  was 
allowed  but  six  months,  instead  of  a  year,  in 
which  to  settle  with  his  creditors. 

A  member  receiving  a  note  from  one  outside 
of  the  Board  was  fined  fifty  cents.  A  member 
leaving  his  seat  while  the  secretary  was  read- 
ing was  fined  25  cents. 

[44] 


Stock  and  Exchange  Board 


In  April,  1869,  a  fire  broke  out  in  the  Yel- 
low Jacket,  Crown  Point  and  Kentuck  Mines 
below  the  600  level,  which  did  great  damage, 
and  was  still  burning  in  a  portion  of  the  Ken- 
tuck  Mine  as  late  as  December  of  that  year. 

A  stock  called  the  American  was  selling  in 
the  Board  in  1869  at  above  $20.  The  manipu- 
lators would  sell  the  stock  regular  way  and 
buy  back  the  same  amount  buyer  thirty. 
Finally,  in  September,  the  stock  broke  in  one 
day  from  $20  to  50  cents,  and  it  was  difficult 
for  those  who  sold  on  contracts  to  collect 
their  differences.  One  honorable  member,  Mr. 
Coll  Deane,  who  believed  in  the  future  of  the 
mine,  and  had  advised  his  friends  to  buy  it, 
called  those  friends  to  his  office  and  gave  them 
his  check  for  their  stock  at  the  high  price  they 
had  paid  for  it.  Too  much  praise  cannot  be 
given  to  this  member  for  his  honorable  action. 

The  caller  of  the  Board,  Mr.  George  Smiley, 
resigned  towards  the  close  of  the  year  1869, 
and  in  order  to  select  a  competent  successor 
the  members  alternated  each  day  in  calling 
the  list.  The  salary  was  fixed  at  $400  a  month. 
M.  S.  Martin  filled  the  chair  a  short  time,  until 
the  2nd  of  November,  when  Joseph  Tilden 
was  elected  caller.  He  resigned  December 
2nd,  1869,  and  B.  Howard  Coit  was  elected 
caller.  He  made  a  great  study  of  this  position,  Board  Rules 
devoting  his  whole  time  to  improving  himself, 

[45] 


History  of  the  Sanfrandsco 


Board  Rules 


until  shortly  his  ability  became  undoubted,  and 
probably  no  human  being  in  the  United  States 
ever  filled  a  similar  position  so  satisfactorily. 
Tall,  of  heavy  weight,  with  huge  chest  and 
large  neck,  with  a  voice  that  could  be  heard 
all  through  the  Board  room,  he  was  splendid 
and  quick  in  judgment,  and  positively  evi- 
denced no  favoritism  nor  partiality.  Mistakes 
must  occur  in  hurried  business,  no  matter  of 
what  nature,  but  Mr.  Coit's  ability  was  so 
undoubted,  as  was  also  his  good  intention, 
that  adverse  decisions,  even  if  Coit  was  wrong, 
were  submitted  to  with  good  grace,  and  the 
transaction  in  dispute  would  be  quickly  ad- 
justed, the  unfortunate  member  selling  or  buy- 
ing, as  the  case  might  be,  with  another  broker. 

The  weekly  circular  issued  by  brokers  was 
discontinued  in  January,  1870.  In  February, 
1870,  legal  tenders  were  selling  in  the  Board 
at  86.  U.  S.  bonds  of  1867  were  selling  at 
In  September  gold  in  New  York  was 
premium — legal  tenders  91. 

In  August,  1870,  the  Board  moved  to  Dun- 
can's Building  on  California  street  and 
remained  there  until  it  moved  to  its  own 
building  on  Pine  street,  October  i,  1877. 

On  October  31,  1870,  the  great  Mercantile 
Library  lottery  was  held.    The  big  prize  of 
$60,000  was  won  in  New  Orleans.    The  Board 
adjourned  that  day  to  attend  the  drawing. 
[46] 


Stock  and ExchameBoard 


In  January,  1871,  the  following  officers  were 
elected:  President,  J.  B.  E.  Cavallier,  Secre- 
tary, Franklin  Lawton;  Vice-Pres.,  E.  E. 
Eyre ;  Treasurer,  H.  Schmiedell ;  Caller,  B.  H. 
Coit. 

Crown  Point  and  Belcher  were  the  high 
priced  stocks  at  this  time.  Crown  Point 
reached  $1825  and  Belcher,  $1400. 

At  about  this  time  Alvinza  Hayward's 
interests  were  such,  that,  while  he  may  not 
have  been  antagonistic,  still  he  could  not  have 
been  as  intimate  at  the  Bank  of  California  as 
before.  With  his  friends  he  controlled  the 
Crown  Point  Mine.  William  Sharon,  having 
formed  the  Union  Mill  and  Mining  Company 
of  Virginia,  Nevada,  controlled  the  Belcher 
Mine.  Each  party  also  owned  large  interests 
in  the  other's  camp.  As  we  understood  it  on 
the  street  at  the  time,  Sharon  proposed  to  sell 
to  Hayward  and  his  friends  all  their  shares  in 
the  Crown  Point  Mine,  at  the  market  price,  on 
condition  that  Hayward  and  his  friends  would 
sell  to  them  all  their  interests  in  the  Belcher 
Mine.  Hayward  asked  a  day  for  consideration, 
and  the  sales  were  made  on  the  above  terms. 
The  Mining  and  Scientific  Press  contains  an 
item  that  the  Mill  Company  owned  4100  shares 
of  Crown  Point  and  Hayward  owned  6300,  out 
of  a  possible  12,000  shares,  and  that  in  the 
transaction,  Crown  Point  sold  at  $300  and 

[47] 


Board  Rules 


History  of  the  Sanfhmdsco 


Board  Rules 


Belcher  at  $175,  that  being  the  market  price 
of  each.  At  $300  a  share  4100  shares  amounted 
to  $1,230,000.  The  sale  of  the  Hayward  in- 
terest in  Belcher  would  augment  this  to  a  very 
large  transaction. 

On  October  12,  1871,  the  Board  gave  $8000 
to  the  sufferers  of  the  Chicago  fire. 

Raymond  &  Ely  and  Meadow  Valley  were 
dealt  in  to  a  large  extent  at  this  time,  and  the 
former,,  in  particular,  paid  large  dividends. 

In  January,  1872,  Mr.  J.  B.  E.  Cavallier 
retired  from  the  presidency,  a  position  he  had 
held  since  the  organization  of  the  Board.  The 
following  were  the  officers  elected:  President, 
E.  P.  Peckham;  Vice-Pres.,  Geo.  W.  Smiley; 
Secretary,  F.  Lawton;  Treasurer,  H.  Schmie- 
dell;  Caller,  B.  H.  Coit. 

It  had  been  an  old  standing  rule  in  the 
Board,  that,  in  the  absence  of  the  caller,  the 
vice-president  should  call  the  list,  and  Mr. 
Smiley's  experience  had  been  such  as  to  make 
him  the  most  available  member  for  the  posi- 
tion of  vice-president. 

Savage  sold  as  high  as  $700  in  the  begin- 
ning of  the  year. 

The  various  mining  companies  were  gradu- 
ally increasing  their  capital  stock  and  number 
of  shares.  On  May  16,  1868,  Crown  Point  and 
Hale  &  Norcross  shares  were  increased  several 
times  the  original  number. 
[48] 


Stock  and  Exchange  Board 


The  Mining  and  Scientific  Press  contains  the 
following  sales  for  the  weeks  ending: 

January  24 $4,540,700 

24 4,208,600 

February  8 8,045,000 

15 7,673,000 


$24,467,300 

Total  sales,  1870 $  51,186,000 

"       1871 127,888,000 

Business  increased  to  a  great  extent  in  the 
early  part  of  1872,  and  so  many  applications 
were  made  to  list  new  mining  companies  on 
the  Board,  that  on  April,  1872,  the  listing  price 
was  raised  from  $200  to  $600;  later  on  the 
price  was  raised  to  $1000,  and  in  the  great 
business  of  1876,  with  226  stocks  on  the  list, 
the  price  was  raised  to  $2000,  and  many  stocks 
were  listed  at  the  latter  figure.  On  April  iyth 
the  call  lasted  from  n  o'clock  to  half-past  i — 
two  hours  and  a  half. 

At  this  time,  when  a  member  died,  the  Board 
adjourned  on  the  day  of  the  funeral.  The  cus- 
tom continued  until  1883  or  1884,  when  it  was 
changed  to  half  a  day  at  the  announcement  of 
a  member's  death. 

The  papers  of  this  time  chronicle  an  ad- 
vance in  prices,  and  then  repeated  breaks  until 
stocks  became  so  low  no  one  would  sell;  and 
then  came  a  quick  and  excited  rise  until  another  Board  Rules 
break.  All  this  was  of  great  benefit  to  com- 
[49] 


History  of  the  SanFrandsco 


Board  Rules 


mission  brokers.  These  rapid  changes  in  prices 
made  large  commissions. 

On  the  i yth  of  May,  1872,  the  Bohemian 
Club  was  incorporated.  As  this  was  another 
down-town  club,  and  convenient  for  the 
Board,  many  members  joined  it. 

On  June  loth  the  Board  decided  to  hold  only 
one  session  on  Mondays,  beginning  at  12 
o'clock.  By  this  action,  many  members  leav- 
ing the  city  over  Sunday  could  arrive  in  time 
for  the  session. 

On  September  nth,  1872,  the  members  had 
a  banquet  in  the  Board  room,  it  being  the 
tenth  anniversary  of  the  founding  of  the 
Board.  Of  the  original  40  members  there  were 
10  present:  J.  B.  E.  Cavallier,  E.  J.  de  Santa 
Marina,  W.  L.  Higgins,  David  Henriques,  H. 
C.  Logan,  Franklin  Lawton,  John  Perry,  Jr., 
R.  C.  Page,  W.  C.  Parker  and  Henry 
Schmiedell. 

Messrs.  Cavallier,  Henriques,  Lawton,  and 
Schmiedell  had  been  members  continuously; 
the  other  six  had  sold  their  original  seats,  but 
had  repurchased  and  were  again  active  mem- 
bers. 

In  January,  1873,  the  name  of  the  presiding 
officer,  during  the  calling  of  stocks,  was 
changed  from  "Caller"  to  "Chairman." 

Business  was  dull  at  times  in  this  year. 


[so] 


VALUE  OF  SEATS 


History  of  the  Sanfraneisco 
Stock  and  Exchange  Board 


CHAPTER  VI 
VALUE    OF    SEATS 


EATS  in  the  Board  have 
always  had  a  fluctuating 
value,  depending  greatly 
on  the  state  of  the  mar- 
ket. If  business  is  dull, 
seats  will  decline  in  val- 
ue, and  a  number  will 
b  e  offered  for  sale. 
Should  business  become 
brisk,  with  plenty  of  orders  to  buy  and  sell, 
very  few  seats  will  be  offered  for  sale,  and 
purchasers  will  be  compelled  to  bid  high  for 
them.  The  original  price  was  $100,  although 
the  members  were  only  called  upon  to  pay  in 
$50  each.  In  a  year  they  were  selling  for  $500, 
which  was  considered  so  high  a  price,  that  other 
boards  were  organized,  where  seats  could  be 
purchased  for  $100.  The  Board  sold  40  more 
seats  in  1862-63;  10  for  $250,  10  for  $500  and 
20  for  $1000  a  seat,  making  the  membership  80. 
In  June,  1864,  Mark  L.  McDonald  purchased 
the  seat  of  H.  Camp  for  $1400.  In  1866  A.  H.  Value  of  Seats 
Lissak  purchased  of  T.  C.  Charles  for  $1500. 
[53] 


History  of  the  SanTrancisco 


Value  of  Seats 


In  the  Constitution  and  By-Laws  of  1867  the 
price  was  fixed  at  $2000.  In  1868  E.  J.  White 
bought  the  seat  of  E.  T.  Pease  for  $2000,  and 
sold  to  Thomas  Williams  in  1870  for  $1500. 
They  decreased  in  value  again:  T.  W.  Fenn 
paid  $900  for  a  seat  in  1869.  This  was  a  very 
low  price,  as  other  seats  in  that  year  sold  for 
$2500  to  $3000.  William  F.  King  bought  of 
Samuel  Doak  in  1869  for  $2500.  The  writer 
paid  $6000  in  May,  1872,  for  the  seat  of  W.  F. 
King.  In  the  same  year  J.  L.  Romer  bought  of 
E.  E.  Dewey,  for  $4500,  and  in  December,  1872, 
John  G.  Ayres  bought  of  C.  Vincent  for  $5000. 

Ayres  represented  the  firm  of  Cope,  Ayres  & 
Davis,  and,  on  January  ist,  1875,  two  years 
later,  sold  his  entire  interest  in  the  firm  to  his 
partners  for  $100,000,  the  seat  being  reckoned 
at  about  $25,000.  In  1873  J.  H.  Mahoney,  Jr., 
bought  the  seat  of  J.  L.  Romer  for  $6000.  C. 
A.  Kenney  bought  the  seat  of  B.  L.  Schmitt 
about  July,  1873,  for  $8000. 

About  the  close  of  1873  John  William  Brown 
bought  of  Louis  Sloss  for  $10,000  and  C.  H. 
Hopkins  bought  of  F.  G.  Webster  for  $9700. 
On  Nov.  1 6,  1874,  W.  H.  Foster  secured  a  seat 
for  $10,000. 

In  the  same  month  Meyer  Ehrlich,  being  ill, 
left  for  Europe,  and  sold  his  seat  to  his  part- 
ner, S.  Steinhart,  for  $15,000. 

In  1874  the  Board  placed  $50,000  in  the  hands 
[54] 


Stock  and  Exchange  Board 


of  a  Trust  Fund  Committee,  consisting  of  three 
members,  who  were  directed  to  loan  the  money 
to  members  on  securities,  consisting  of  good 
stocks,  listed  on  the  Board,  at  the  high  rate  of 
interest  then  prevailing,  especially  those  ob- 
tained on  time  contracts.  In  addition  to  this 
the  Board  formed  a  life  insurance  fund  of 
,$10,000  upon  the  life  of  each  member,  in  good 
standing,  to  be  paid  to  his  widow  at  his  death. 

This  immediately  advanced  the  price  of 
seats.  It  was  understood  at  the  time  that  Mil- 
ton S.  Latham,  of  the  London  and  San  Fran- 
cisco Bank,  advanced  the  necessary  $10,000  to 
purchase  a  seat  for  W.  H.  Foster,  who,  as 
related  above,  was  elected  Nov.  16,  1874.  It 
was  represented  to  the  Board  by  a  member  that 
this  applicant  was  not  in  good  health,  and  he 
opposed  his  election,  on  the  ground  that  it 
might  be  a  drain  on  our  insurance  fund.  Not- 
withstanding this  the  gentleman  was  elected, 
as  stated  before,  and  died  four  months  later 
on  March  19,  1875.  The  $10,000  insurance  was 
promptly  paid,  and  at  the  latter  date  the  seat 
itself  was  worth  $30,000. 

Then  arose  the  custom  of  introducing  an 
applicant,  admitting  him  to  the  floor  of  the 
Board  before  his  election.  C.  Van  Dyke  Hub- 
bard  was  elected  Nov.  30,  1874,  on  the  seat  of 
L.  S.  Rose,  paying  $20,000.  Fleet  F.  Strother  Value  of  Seats 
sold  his  seat  for  $17,500  and  the  candidate  came 

ESS] 


History  of  the  SanFrandsco 


Value  of  Seats 


up  for  election  Nov.  21,  1874.  The  candidate 
was  not  elected.  Mr.  Strother  remained  in  the 
Board  until  after  the  election  of  officers  in 
1875,  placing  in  nomination  for  President  Mr. 
James  R.  Keene,  who  was  elected  to  that  office. 
On  February  2,  1875,  Strother  sold  his  seat  for 
$30,000  to  Mr.  S.  B.  Boswell,  who  was  elected. 

Mr.  William  E.  Hale  was  elected  Feb.  10, 
1875,  in  place  of  J.  P.  Cantin,  paying  $40,000 
for  the  seat.  On  March  2,  1875,  Mr.  Jacob 
Greenebaum  was  elected  in  the  seat  of  Minor  S. 
Martin,  paying  $30,000.  May  25,  1875,  Mr. 
Maurice  Schmitt  paid  $30,000  for  the  seat  of 
David  Henriques,  and  was  elected. 

E.  G.  De  Crano,  in  April  or  June,  1875,  was 
elected  on  the  seat  of  W.  T.  Stanford,  paying 
about  $30,000.  Finally,  in  April,  1875,  E. 
P.  Peckham  bid  on  the  floor  of  the  Board 
$43,000  for  a  seat  with  no  sellers,  the  highest 
bid  ever  made  on  the  floor,  to  the  best  of  my 
recollection.  These  prices  were  paid,  because 
applicants  had  promises  of  business,  and  in 
face  of  the  fact  that  the  Board  itself  was  about 
to  increase  its  membership,  and  sell  20  addi- 
tional seats.  On  June  i,  1875,  the  San  Fran- 
cisco Stock  and  Exchange  Board,  in  executive 
session,  passed  a  resolution  increasing  its  mem- 
bership to  100,  the  20  additional  seats  to  be 
sold  at  not  less  than  $25,000  each.  It  was  re- 
ported to  the  Board  that  we  had  $150,000  in 
[56] 


Stock  and  Exchange  Board 


Montgomery  street,   and   ere 
building  thereon. 

Following  are  the  names  of  the  twenty  mem- 
bers elected  on  the  new  seats: 

1.  June  12th,  1875 William  Sharon 

2.  June  12th,  1875 James  C.  Flood 

3.  June  12th,  1875 Robert  F.  Morrow 

4.  June  12th,  1875 James  D.  Fry 

5.  June  12th,  1875 William  S.  O'Brien 

6.  June  12th,  1875 Alexander  Austin 

7.  June  12th,  1875 George  M.  Pinney 

8.  June  12th,  1875 Richard  C.  Hooker 

9.  June  12th,  1875 Charles  N.  Felton 

10.  June  12th,  1875 H.  H.  Scott 

11.  June  12th,  1875 John  P.  Jones 

12.  June  21st,  1875 L.  T.  Haggin 

13.  June  24th,  1875 H.  Hart 

14.  June  24th,  1875 Samuel  B.  Wakefield 

15.  Aug.  16th,  1875 Charles  S.  Neal 

16.  Nov.  22nd,  1875 George  T.  Mayre,  Jr. 

17.  Nov.  29th,  1875 Marcus  P.  Hall 

18.  Nov.  29th,  1875 Eugene  E.  Dewey 

19.  Nov.  29th,  1875 Joseph  Quay 

20.  Sept.  27th,  1877 Martin  Herman 

During  the  sale  of  the  seats,  one  of  the  above 
purchasers,  George  M.  Pinney,  sold  his  seat 
to  Frank  Swift  for  $18,000,  and  Mr.  Swift  was 
elected  Aug.  21,  1875 — a  quick  loss  here  of 
$7000.  The  Board  wished  to  sell  its  20  seats,  Value  of  Seats 
and  discouraged  the  selling  of  member's  seats 

[57] 


History  of  the  Sanfrandsco 


Value  of  Seats 


until  this  was  accomplished,  but  two  members 
were  elected  toward  the  close  of  the  year  with- 
out purchasing  from  the  Board — E.  P.  Murphy 
paying  $25,000  for  the  seat  of  J.  M.  Burtsell, 
and  was  elected  Oct.  isth,  1875.  Meyer  Ehr- 
lich,  having  returned,  re-entered  the  Board, 
being  elected  Nov.  22,  1875,  paying  $25,000 
for  the  seat  of  William  B.  Thornburgh. 

A  number  of  transfers  of  seats  occurred  dur- 
ing 1876,  but  positive  record  exists  of  only  the 
following  sales,  at  prices  mentioned: 

January,  T.  T.  Atkinson  of  A.  W.  Whitney, 
$26,000. 

January,  J.  V.  Coleman  of  J.  N.  Vimont, 
$25,000. 

January,  Geo.  C.  Hickox  of  C.  H.  Hopkins, 
$25,000. 

January,  H.  L.  Van  Wyck  of  E.  J.  de  Sta. 
Marina,  $25,000. 

Feb.  19,  A.  A.  Hickox  of  J.  E.  Shawhan, 
$27,250. 

March  3,  Fulton  G.  Berry  of  B.  F.  Sherwood, 
$30,000. 

April  17,  Wm.  Mackintosh  of  Robert  C. 
Page,  $40,000. 

April  19,  J.  H.  Page  of  A.  G.  Kinsey,  $40,000. 

Aug.  2,  J.  K.  S.  Latham  of  G.  F.  M.  Glover, 
$30,000. 

Aug.  3,  Joseph  Marks  of  Geo.  T.  Knox, 
$25,000. 

[58] 


Stock  and  Exchange  Board 


Oct.  17,  James  Patterson  of  E.  G.  DeCrano, 
$25,000. 

1877. 

Feb.  19,  A.  F.  Coffin  of  W.  C.  Parker,  $25,000. 

May  1 6,  Joseph  T.  Goodman  of  Joseph  Quay, 
$12,500. 

1878 

Aug  7,  N.  T.  Messer  of  Jack  McKenty, 
$25,000. 

O.  V.  Walker  of  Joseph  Ford,  $30,000. 
1879 

The  nineteenth  Board  seat,  as  stated  in  the 
record,  was  sold  on  November  29,  1875,  and  the 
twentieth  seat  not  until  Sept.  27,  1877,  nearly 
two  years  afterwards;  also  that  during  that 
period  of  time,  seats  were  selling  at  $30,000 
and  even  as  high  as  $40,000.  The  question 
arises,  why  was  not  the  last  Board  seat  sought 
for  at  $25,000  instead  of  applicants  paying 
$30,000  and  $40,000  for  a  member's  seat  ?  After 
this  lapse  of  time,  some  34  years,  the  reason  has 
escaped  me,  but  as  has  been  stated  above,  seats 
sold  as  high  as  $40,000  with  the  last  Board  seat 
still  unsold. 

At  the  close  of  1879  the  Sierra  Nevada-Union 
deal  was  about  over,  and,  as  business  declined, 
so  did  the  value  of  seats.  Other  members  than 
those  mentioned  above  sold  their  seats  in  1879, 
but,  unfortunately,  there  is  no  record  as  to  the  Value  of  Seat: 
prices. 

[59] 


History  of  the  SanFrandsco 


7alue  of  Seats 


December  23rd,  1879,  F.  W 
C.  N.  Felton's  seat  for  $6,000. 

In  1882  John  MacKenzie  bought  A.  Austin's 
seat  for  $6,000;  in  1883  Charles  Anderson  pur- 
chased of  F.  Lawton  for  $3,000,  William  Ed- 
wards of  Dan  Yost  for  $3,000,  and  C.  D.  Laing 
of  L.  A.  Zinns  for  $2,500;  in  June,  1884,  T. 
Whitely  bought  of  C.  S.  Neal  for  $3,000,  and  in 
1885  George  W.  Kelly  secured  J.  S.  Wilson's 
seat  for  $2,800. 

Business  was  better  in  1886  and  seats  were 
somewhat  higher  again.  In  December  of  that 
year  Werner  Stauf  bought  W.  P.  Dewey's  seat 
for  $5,000.  In  1888  J.  S.  Barrett  purchased  of 
E.  A.  N.  Hughes  for  $4,750. 

In  the  year  1883  the  insurance  on  the  lives  of 
the  members  was  reduced  to  $5,000.  This,  with 
dull  business,  was  the  cause  of  the  great  de- 
cline in  the  value  of  seats.  In  June,  1891,  the 
insurance  was  abolished. 

In  1886  a  resolution  was  passed  authorizing 
the  president  of  the  board  to  purchase  seats  of 
retiring  members  at  $2,500  each.  In  succeed- 
ing years  seats  were  purchased  as  follows: 

1.  L.  F.  Loveland   (estate) $2,500 

2.  John  William  Brown,  Oct.,  1891.  2,500 

3.  A.  H.  Lissak,  Dec.,   1891 2,500 

[60] 


Stock  and  Exchange  Board 


4.  E.  F.  Child,  1888 2,500 

5.  H.  H.   Scott,   1888 2,500 

6.  Marcus  P.  Hall,  July,  1892 2,500 

7.  J.  H.  Mahoney,  Jr.,  July,  1892. . . .  2,500 

8.  W.  L.   Duncan,   Nov.,   1892 2,500 

9.  Joseph  Bernhard  (estate)   1900...   1,000 

10.  James  Patterson,  prior  to  1900...      800 

11.  O.  P.  Jones,  prior  to  1900 1,100 

In  March,  1890,  A.  B.  Ruggles  purchased  the 
seat  of  John  E.  Dixon  for  $2,500.  April  20th, 
1890,  John  A.  Walls  bought  of  H.  A.  Jones  for 
$3>75°-  In  succeeding  years,  as  business  be- 
came duller,  the  prices  ranged  between  $2,500 
and  $1,500.  The  fact  that  we  owned  the  build- 
ing on  Pine  street  gave  a  value  to  the  seats 
that  the  stagnant  business  did  not  warrant. 
The  belief  that  we  would  eventually  sell  the 
building,  and  declare  a  dividend  of  at  least 
$3,000  a  seat,  kept  many  from  selling.  In  1900 
Joseph  Nash  bought  of  W.  S.  Wattles  for 
$1,300. 

In  1901  a  resolution  was  offered  by  William 
E.  Hale  that  the  proper  officers  be  directed  to 
sell  the  building  and  lot  for  $400,000.  It  cost 
$644,000.  A  few  of  us  were  opposed  to  the  reso- 
lution, as  it  looked  like  the  death  knell  to  the 
Stock  Board.  It  was  also  our  opinion,  in  form- 
ing the  company  of  Associated  Stock  Brokers, 
in  1875,  that  the  lawyers  had  so  perfected  mat- 
ters that  the  building  never  could  be  sold,  and 
would  always  remain  in  possession  of  the 
[61] 


Value  of  Seats 


History  of  the  Sanfrancisco 


Value  of  Seats 


Board.  The  latter  opinion  was  erroneous.  The 
offer  to  sell  was  afterwards  reduced  to  $300,000, 
and,  in  1903,  the  sale  was  made  at  that  amount. 
A  dividend  of  $3,000  a  seat  was  declared,  and 
later  on  a  second  dividend  of  $400. 

The  Board  retained  a  considerable  amount  of 
the  money  obtained  from  the  sale  and  with  it 
offered  to  purchase  seats  of  retiring  members. 

They  purchased  altogether  about  39  seats, 
mostly  at  $100  each,  which,  with  eleven  seats 
purchased  in  former  years,  made  a  total  of  50 
seats  belonging  to  the  Board. 

There  were  private  purchases  at  the  close  of 
the  year  1904  ranging  from  $200  to  $500. 

In  September,  1904,  the  Board  sold  nine  seats 
to  the  Pacific  Board  Brokers  at  $200  each ;  also 
five  seats  to  other  applicants  at  $200;  and  ten 
at  $500  each.  The  Board  bought  the  seat  of 
Coll  Deane  (estate)  in  1906  for  $1,500  and  sold 
a  seat  at  $3,000  to  H.  H.  Norwood. 

In  1905  the  Tonopah  and  Goldfield  Stocks, 
lately  listed,  gave  the  Board  a  new,  large  busi- 
ness and  the  price  of  seats  advanced  steadily  to 
$5>75°»  Business  became  dull  again,  and  at  this 
writing,  July,  1909,  seats  are  probably  worth 
about  $2,500.  The  Board  owns  at  this  time, 
1909,  14  seats,  making  the  membership  86. 

During  the  first  ten  years  of  the  Board's 
existence  a  member's  seat  was  looked  upon  in 
the  same  light  as  a  carpenter's  tools,  or  work- 
[62] 


Stock  and  Exchange  Board 


man's  outfit,  and  was  not  attachable  for  debts 
outside  the  Board.  As  seats  became  more  valu- 
able, about  1874,  a  long  executive  session  was 
held  over  the  question,  whether  it  was  honor- 
able for  us,  when  a  seat  became  worth  $12,000 
to  $15,000,  to  permit  a  member  to  fail,  or  quit 
the  Board,  with  this  amount,  without  paying 
debts  due  to  his  clients ;  and  we  then  passed  the 
law  making  members  preferred  creditors,  and 
the  balance  to  be  divided  between  those  outside 
creditors  who  filed  claims  against  a  delinquent 
member. 


Value  of  Seats 


OPHIR  CONTEST 


History  of  the  Sanfrancisco 
Stock  and Exchange Board 


CHAPTER  VII 
OPHIR   CONTEST 


| HERE  was  a  great  contest 
for  the  control  of  Ophir 
stock,  at  the  annual  election 
in  December,  1874.  Mr. 
Baldwin  was  supposed  to 
have  the  control.  Mr. 
Sharon  succeeded  in  buying 
Keene's  interest,  and  then 
began  a  struggle  for  the 
control  between  Sharon  and  Baldwin. 

At  first  we  could  sell  our  Ophir  at,  say,  $65 
cash  and  re-purchase  at  64  S-go.  Gradually 
these  figures  widened,  so  that  one  could  sell 
Ophir  stock,  regular  way,  as  high  as  $70,  $75, 
$80  and  $90,  and  still  buy  it  back  at  $65  to 
$70  S-go.  Still  higher  prices  for  cash  Ophir 
stock— $100,  $120,  $150 — and  S-go  stock  could 
still  be  had  at  $75,  $85,  $go.  The  Sharon 
interest  was  the  purchaser  of  the  cash  stock, 
and  also  the  seller  of  the  S-go  stock,  paying 
$40,  $50,  $75  a  share  difference. 

This  purchase  of  the  cash  stock  gave  the      Ophir  Contest 
Sharon  interest  the  control.   Any  broker  who 


History  of  the  Sanfrandsco 


his  box  of  stocks  could 
$20,000.   Should  a  broker 
sell  his  customer's  stock 


Ophir  Contest 


at  any  time 
so  impolitic  as 

$150  a  share,  regular  way,  and  buy  it  back  at 
$75  S-go,  and  then  should  his  client  call  for 
his  stock,  the  broker  would  be  compelled  to 
buy  it  in  and  pay  a  higher  price  than  that  at 
which  he  sold. 

There  was  a  number  of  small  claims  extend- 
ing from  the  Consolidated  Virginia  north  to 
the  Ophir  line,  among  them  being:  Central 
No.  i,  Central  No.  2,  and  California.  A  rich 
strike  was  made  close  to  the  Central  No.  2. 

The  Consolidated  Virginia  was  controlled 
by  the  firm  of  Flood  &  O'Brien,  and  the  con- 
trol of  Central  No.  2  would  be  of  great  ad- 
vantage to  them.  Marina,  of  the  firm  of  Glazer 
&  Co.,  had  an  order  from  Mr.  Flood  to  buy 
sufficient  to  obtain  control.  I  know  of  sales 
occurring  at  35  on  the  call,  and  Marina  carried 
it  as  high  as  72  before  obtaining  the  requisite 
quantity.  One  of  the  brokers  commenced  buy- 
ing for  himself,  and  as  Marina  continued  buy- 
ing, this  broker  bought  500  shares,  probably  as 
high  as  50,  and  when  the  buying  stopped  at 
$72  he  was  more  than  $10,000  winner  at  the 
close  of  the  call.  He  retained  the  stock,  and,  in 
the  rise  and  subsequent  dividends,  he  realized 
a  large  fortune,  quitting  in  1876  for  New 
York,  reputed  to  be  worth  at  least  $5,000,000. 
[68] 


dWA    AIMHO^IJAD    5I3MHOD     T2A3HT5IOM 
ed8I  MI  313351X8  YH3MOOTWOM 


>  oad  100  shar» 

it  at  any  time  for  $20,000.  Should  a  broker  be 
so  impolitic  as  to  sell  his  customer's  sto 
$150  a  share,  regular  way,  and  buy  it  back  at 
$75  8-90,  and  then  should  his  client  call  for 
his  stock,  the  broker  would  be  compelled  to 
buy  it  in  and  pay  a  higher  price  than  that  at 
which  he  s; 


;en,  and  the  con- 

*t  Central  No.  2  would  be  of  great  ad- 
vantage to  them.  Marina,  of  the  firm  of  Glazer 
&  Co.,  had  an  order  from  Mr.  Flood  to  buy 
ent  to  obtain  control.     I  know  of  sales 
call,  and  Marina  carried 
i  as  73  ' 


close  of  the  c 

the  rise  and  subse< 


•   • 


'••-,,  and,  in 
ids,  he  realized 


NORTHEAST     CORNER    CALIFORNIA 
MONTGOMERY  STREETS  IN  1865 


• 


AND 


Stock  and  Exchange  Board 


These  mines,  from  the  north  line  of  Consoli- 
dated Virginia  to  Ophir,  were  all  absorbed  by 
the  Consolidated  Virginia.  Subsequently  a 
new  corporation  was  formed  out  of  the  600 
feet  south  of  Ophir  and  was  called  the  Cali- 
fornia. Each  share  in  Consolidated  Virginia 
receiving  7-12  of  a  share  of  the  new  corpora- 
tion, as  a  stock  dividend.  Later  on  the  108,000 
shares  in  each  of  the  mines  were  increased  five 
times,  making  540,000  shares  in  each. 

At  this  time  Consolidated  Virginia  was  sell- 
ing at  $90  a  share.  The  day  we  received  our 
stock  dividend  of  California  stock,  the  price 
broke  to  about  $65,  California  selling  at  about 
$40  to  $45.  In  the  course  of  time  Consolidated 
Virginia  rose  in  value  and  was  again  selling  at 
$90,  so  that  all  who  held  the  original  stock 
were  fortunate;  they  could  still  sell  their  Con- 
solidated Virginia  at  $90,  and  the  stock  divi- 
dend of  California  was  a  clear  profit. 


Ophir  Contest 


GREAT  BUSINESS  OF  1874-1875 


History  of  the  Sanfrandsco 
Stock  and  Exchange Board 


CHAPTER  VIII 
GREAT   BUSINESS    OF   1874-1875 


MOMENTOUS  year— 1875 
— the  greatest,  grandest, 
most  profitable  year  in  the 
history  of  the  Board,  was  at 
hand.  We  could  not  fore- 
see the  great  events  about  to 
occur  in  which  we  were  to 
be  actors.  Great  profits, 
i  but,  at  the  same  time,  dis- 
astrous events  were  before  us.  The  immense 
rise  in  Consolidated  Virginia  and  California 
and  the  entire  list  was  approaching.  Listing 
of  new  stocks  was  raised  to  $2000  and  the 
value  of  our  seats  raised  to  $43,000.  Large 
fortunes  were  to  accrue  to  many  brokers  and 
their  clients,  and  several  old  associates  were  to 
lose  all  and  leave  us — some  penniless.  Our 
caller  was  to  leave  for  six  months.  Twenty 
new  members  were  to  be  elected  and  the 
Board  was  to  have  a  building  of  its  own.  The 
suspension  of  the  Bank  of  California  was  to  Great  Business 
appal  the  street,  as  was  the  death  of  W.  C.  Ral-  Of  1874-1875 
ston.  The  Board  was  to  be  closed  for  six 

[73] 


History  of  the  SanErandsca 


rreat  Business 
of  1874-1875 


weeks.  Fire  was  to  sweep  Virginia  City  and 
cause  a  great  break  in  prices.  A  rival — the 
Pacific  Stock  Exchange — was  to  organize,  with 
many  wealthy  men  as  members. 

February  15,  1875,  B.  Howard  Coit,  Chair- 
man, obtained  leave  of  absence  for  six  months, 
in  which  he  traveled  around  the  world  and 
returned  August  18,  1875.  His  monthly  salary 
of  $1000  was  continued  during  his  absence.  H. 
C.  Logan  was  elected  assistant  chairman  dur- 
ing Coit's  absence  at  a  salary  of  $500  a  month, 
and  he  was  also  allowed  an  additional  amount 
of  $2000  when  Coit  resumed  his  duties. 

Consolidated  Virginia  rose  in  value  to  $760 
cash  and  $800  6-30;  California  sold  at  $790 
cash  and  $800  6-30.  At  $800  a  share  the  108,000 
shares  in  the  California  mine  sold  for 
$86,400,000;  600  feet,  value  per  foot,  $144,000; 
per  inch,  $12,000. 

Ophir  sold  as  high  as $320.00 

Mexican,  a  stock  dividend  of  Ophir    75.00 

Gould  &  Curry   60.00 

Best  &  Belcher   72.00 

Savage    190.00 

Chollar    90.00 

Exchequer 350.00 

Hale  &  Norcross 69.00 

California    790.00 

Con.  Virginia    700.00 

Imperial    19.00 

Kentuck    24.00 

Jacket    150.00 

[74] 


Stock  and  Exchange  Board 


Crown   Point    40.00 

Belcher    57.00 

Sierra   Nevada    27.50 

Overman    86.00 

Caledonia    33.00 

And  the  street  business!  The  first  session 
was  at  ii  A.  M.  Before  that  hour  we  would 
congregate  on  the  north  side  of  California 
street,  on  the  corner,  and  below  Montgomery. 
And  what  sales  we  made !  As  a  broker's  broker 
I  have  transacted  there  before  the  Board 
$100,000  worth  of  stocks  for  one  firm,  and  that 
before  the  firm  knew  of  the  order.  When  I 
now  reflect  on  the  magnitude  of  that  business, 
and  the  responsibility  of  the  brokers,  and  the 
absolute  honesty  of  all  connected  with  the 
transactions,  whether  they  were  members  of 
the  Board  or  not,  I  look  back  to  it  with  pride 
and  with  confidence  in  human  nature. 

Many  brokers  on  arriving  at  their  offices,  a 
little  late  perhaps,  would  ascertain  that  several 
of  their  clients,  big  traders,  had  already  trans- 
acted on  the  street  thousands  of  dollars  in  busi- 
ness. A  non-member,  in  making  a  sale  or  a 
purchase  on  the  street,  would  state  the  name 
of  his  broker  in  the  Board.  His  word  would  be 
taken,  and  the  transaction  compared  with  the 
absent  broker,  and  such  was  the  honor  and 
integrity  of  all  concerned,  that  I  cannot  recol-  Greai  Business 
lect  a  single  transaction  that  was  afterwards  of  1874-1875 
repudiated,  although  wide  differences  would 

[75] 


History  of  the  Santhmeisco 


occur  in  the  prices  of  the  stocks  when  the 
Board  met.  When  we  recollect  that  honor  was 
the  basis  of  all  of  our  transactions,  one  can 
look  back  with  satisfaction  on  those  days  when 
San  Francisco  could  boast  of  as  honest  a  set  of 
men  as  ever  lived  anywhere  in  this  world; 
where  street  transactions,  amounting  to  hun- 
dreds of  thousands  of  dollars,  would  be  com- 
pared and  reported  before  the  Board  met  in 
morning  session. 

The  crowd  became  so  large  that,  finally,  a 
policeman  was  stationed  every  morning  to 
make  a  passageway  between  us,  so  that  citizens 
having  business  in  that  locality  could  get 
through.  Finally,  Mr.  Harry  Logan,  at  execu- 
tive session,  complained  of  this,  and  objected 
to  being  hustled  around  on  the  street  by  police- 
men, and  offered  a  resolution  throwing  the 
doors  of  the  Board  room  open  at  9:30  in  the 
morning.  This  was  done  and  was  the  be- 
ginning of  those  informal  sessions,  when  that 
California  street  room,  at  this  early  hour,  would 
be  packed  and  jammed  to  its  utmost  capacity 
by  a  mob  of  excited  stock  dealers.  Gradually 
one  of  the  members  would  mount  the  rostrum 
at  9:30  and  call  the  principal  stocks,  at  which 
time  all  would  be  permitted  to  bid  for  or  sell 
Ireat  Business  stoc^s-  And  tnev  smoked  cigars  and  pipes,  and 
of  1874-1875  the  more  excited  they  became  the  larger  would 
be  the  volume  of  smoke  arising  to  the  ceiling. 

[76] 


-aa   ,T33$iT8   AIWJIOHIJAO   aai8   HTUOS 

3MO8HA8  QUA  YH3MOOTMOM  M33WT 
-aJIUfl  3HT  8XHAM  82OHD  A  .8T33HT8 
-838  8TI  QJ3H  QHAOfl  3HT  3H3HW  OMI 

MI   8MOI8 


Francisco 


in  the  prices  of  the  stocks  when  the 
I  met.  When  we  recollect  that  honor  was 
the  basis  of  all  of  our  transactions,  one  can 
look  back  with  satisfaction  on  those  days  when 
San  Francisco  could  boast  of  as  honest  a  set  of 
men  as  ever  lived  anywhere  in  this  world; 
whei  hun- 

dreds of 


at  execu- 
tive session,  complained  of  this,  and  objected 
to  being  hustled  around  on  the  street  by  police- 
men, and  offered  a  resolution  throwing  the 
door?  Board  room  open  at  9  :ao  in  the 

was   the  be- 


time  all  would  b> 

stocks.  And  they  smt.  ipes,  and 


SOUTH  SIDE  CALIFORNIA  STREET,  BE- 
TWEEN MONTGOMERY  AND  SANSOME 
STREETS.  A  CROSS  MARKS  THE  BUILD- 
ING WHERE  THE  BOARD  HELD  ITS  SES- 
SIONS IN  1870 


Stock  and  Exchange  Board 


Some  of  the  largest  transactions  of  the  day 
would  take  place  at  the  time.  There  was  a 
long  hall-way  of  probably  50  to  60  feet  lead- 
ing from  California  street  to  the  Board  room. 
This  would  be  packed  with  excited  dealers  also, 
and  it  was  hard  work  for  a  broker  to  make  his 
way  from  the  street  to  the  Board  room.  As  I 
was  entering  one  morning,  a  customer  gave  me 
a  verbal  order  to  buy  5000  California  stock,  it 
having  fallen  to  $45  a  share.  Before  I  could 
get  anywhere  near  the  Board  room  proper,  the 
stock  had  rallied  to  $55. 

Then  it  was  necessary  to  tidy  up  at  10:30, 
and  the  janitor  and  messenger  boys  would 
clear  the  room  for  the  regular  n  o'clock 
session. 

During  Coit's  absence,  Harry  Logan,  assist- 
ant chairman,  on  July  30,  1875,  called  to  the 
secretary,  transactions  that  covered  27  pages 
in  one  hour  and  a  quarter.  We  had  two  assist- 
ant secretaries,  who  entered  the  transactions  in 
shorthand,  and  finally,  Robb  would  call  in  the 
morning  and  Barton  in  the  afternoon.  Ben 
Hilliard  was  the  roll  keeper  and  kept  record 
of  the  fines.  For  months  the  admission  tickets 
of  $5  monthly  and  the  fines  levied  on  members 
would  nearly  equal  each  other,  ranging  at 
$2000  or  thereabouts. 

Just  before  n  A.  M.  we  would  hurry  to  our 
offices,  report  our  transactions,  send  out  a 

[77] 


Great  Business 
of  1874-1875 


History  of  the  Santraneisco 


Great  Business 
of  1874-1875 


clerk  to  compare  them,  and  in  the  meantime  a 
clerk  would  have  entered  in  a  book  our  orders 
for  the  morning  call,  and  then  we  would  hasten 
to  the  Board.  To  be  late  was  a  crime. 

And  from  whence  came  our  orders?  Im- 
primis— from  San  Francisco,  and,  literally, 
from  the  kitchen  to  the  pulpit;  from  every 
shade  in  life,  and  every  nationality  represented 
in  San  Francisco.  Chinamen  were  large  gam- 
blers in  mining  stocks.  Sacramento,  Virginia 
City  and  Carson  City  were  large  traders;  Vir- 
ginia City  in  particular.  Wherever  the  tele- 
graph wire  extended,  orders  would  roll  in  on 
us.  The  Eastern  cities  also,  New  York  in  par- 
ticular, were  represented  in  every  Board.  The 
steady,  continued  orders  from  New  York  were 
a  great  help  to  us  when  a  dull  spell  arrived. 
London,  Paris,  Berlin  and  Frankfort  sent  us 
orders. 

The  ii  o'clock  Board  was  the  great  event  of 
the  day.  As  the  transactions  in  the  informal 
Board  were  not  recorded  by  our  secretary  or 
printed  in  the  official  list,  it  soon  became  a 
custom  with  us  to  withhold  all  foreign  orders 
until  the  regular  call,  so  that  if  any  question 
arose  about  the  sale,  a  certified  copy  of  that 
portion  of  the  record  could  always  be  fur- 
nished. 

As  to  the  opening  prices  on  the  call,  one 
with  large  orders  would  be  guided,  to  a  great 

[78] 


Stock  and Exchange Board 


extent,  by  the  feeling  on  the  street  at  the  close, 
and  to  some  extent  it  foretold  a  busy  or  a 
moderate  Board. 

It  was  a  fine  sight,  on  a  busy  day,  to  watch 
the  members  enter  the  Board,  all  crowding  in 
probably  during  the  last  five  minutes  before 
the  gong  sounded,  the  clerks  all  in  their  places 
at  the  rostrum,  and  Chairman  Coit  casting  an 
eye  at  the  clock  as  the  minute  hand  approached 
the  hour  of  u. 

If  your  book  was  loaded  and  full  of  orders, 
it  was  a  crime  to  disclose  it  by  action  or  word, 
or  become  annoyed  when,  all  ready,  to  have 
the  sergeant-at-arms  bring  you  an  envelope 
containing  another  large  order  on  all  the  prin- 
cipal stocks.  In  the  latter  case  we  could  al- 
ways whisper  to  a  neighbor  to  help  us  by  exe- 
cuting an  order,  until  we  could  attend  to  it 
ourselves.  Our  desks,  at  that  time,  were  ar- 
ranged like  the  floor  of  the  United  States 
Senate,  with  lids  about  20  inches  square,  and 
a  straight  aisle  extended  from  the  door  to  the 
rostrum. 

At  first  we  were  fined  for  leaving  our  desks, 
the  custom  being  to  rise  in  executing  an  order ; 
but   gradually   one   of   the   brokers,   John   G. 
Ayres,  having  a  seat  away  off  in  the  corner  to 
the  left  of  the  caller,  in  the  excitement  of  fill-      Great  Business 
ing  an  order,  gradually  worked  his  way  around      of  1874-1875 
to  the  front  of  the  rostrum  and  down  the  aisle, 
[79] 


History  of  the  SanFrancisco 


Great  Business 
of  1874-1875 


others  following,  fine  or  no  fine.  And  so  the 
chairman  recognized  the  situation,  the  fine  for 
this  offense  would  not  be  imposed,  and  finally 
all  of  us  would  leave  our  seats,  on  the  call  of 
the  important  stocks,  and  gather  in  front  of 
the  rostrum. 

Think  of  a  two-hour  session  with  those  high- 
priced  stocks  selling  from  $50  to  $100,  $200, 
$500,  $750  per  share.  A  broker  with  large 
orders  could  not  be  timid  or  pause  long  in 
their  execution.  His  orders  would  set  the  price 
and  make  the  market  which  others  would  fol- 
low. And  to  such  a  broker,  on  such  an  occasion, 
there  was  nothing  in  his  world,  for  the  time 
being,  but  his  orders  and  the  excellence  with 
which  he  could  execute  them. 

In  looking  over  the  list  of  members  for 
April,  1875,  it  is  evident  from  recollection  that 
75  out  of  the  80  members  were  active  brokers, 
liable  to  execute  large  orders  at  any  time. 

When  the  gong  sounded  all  conversation 
ceased  for  a  moment,  until  the  first  stock  on 
the  list,  Ophir,  was  called,  when  the  bids  and 
offers  were  made.  It  became  a  custom  for  the 
seller  to  record  his  sales  to  the  chairman, 
although  the  buyers  were  permitted  also  to  call 
up  the  same  transactions.  As  the  business  be- 
came greater,  Mr.  Coit  urged  us  commission 
brokers  to  instantly  record  our  transactions,  a 
splendid  rule,  as  we  could  then,  while  that 
[80] 


Stock  and  Exchange  Board 


stock  was  still  on  the  floor,  enter  our  trans- 
actions in  our  books,  and  prepare  for  the  next 
stock. 

Two  hours  was  a  long  session.  After  the 
morning  list  was  called,  one  of  the  clerks  would 
read  the  transactions  as  recorded,  the  other 
secretary  correcting  him,  should  they  differ  in 
the  transaction;  the  parties  to  the  contract 
would  then  announce  the  correct  price. 

Often  the  same  transaction  would  be  re- 
corded twice,  and  it  would  be  entered  as  "one 
lot."  It  was  possible  for  the  clerks  to  be 
nearly  an  hour  reading  and  correcting  the 
record.  After  the  call,  the  brokers  would  re- 
main, and  further  transactions  would  be  made 
at  about  Board  prices. 

Lunch  anywhere  before  2  P.  M.  At  2:30 
another  short  informal,  and  at  3  P.  M.,  the  last 
session,  with  the  afternoon  list,  headed  by 
Meadow  Valley  and  Raymond  &  Ely. 

Mines  in  other  localities  than  the  Comstock 
were  called  at  this  session.  After  adjournment 
we  would  trade  in  all  listed  stocks,  and  in  the 
winter  we  have  remained  so  long  filling  orders, 
that  darkness  would  arrive,  and  the  gas  would 
be  lit,  and  still  we  would  continue.  Until, 
finally,  one  by  one  we  would  drop  out,  go  to 
our  offices  and  report  our  transactions,  which 
the  clerks  would  compare,  the  bookkeepers 
would  balance  cash,  and  then  good  night.  It 
[81] 


Great  Business 
of  1874-1875 


History  (/the  Sanfrancisco 


Great  Business 
of  1874-1875 


can  be  truthfully  said  that  a  broker,  in  active 
times,  would  rather  buy  and  sell  stocks  than 
eat  his  dinner. 

My  young  broker  friends,  permit  me  to  give 
you  this  experience:  In  1873,  through  a  cus- 
tomer, I  lost  everything,  and  for  nearly  two 
years  was  employed  as  a  broker's  broker,  which 
gave  me  a  great  experience.  An  old  Virginia 
City  friend,  a  member,  wished  me  to  execute 
his  orders.  I  agreed.  Said  he,  "I  gave  this 
morning  an  order  to  a  broker  to  sell  a  stock, 
and  after  the  Board  he  said  'that  stock  was  too 
low;  it  will  be  higher  tomorrow,  and  so  I  did 
not  sell  it.' "  "Now,"  said  my  friend,  "I  don't 
want  your  views  as  to  whether  the  market  will 
be  better  tomorrow  or  not ;  when  I  give  you  an 
order  to  buy,  buy  it." 

There  was  only  one  member  younger  than 
I  in  the  Board,  and  this  advice  to  a  young  man 
endeavoring  to  perfect  himself  in  executing 
orders  on  the  floor  was  invaluable,  and  the 
advice  was  followed  literally,  and  I  soon  found 
was  giving  great  satisfaction.  So  much  so  that 
my  friend's  orders  increased  to  an  immense 
business.  Other  brokers  became  anxious  for 
me  to  execute  their  orders  also,  when  business 
would  permit  of  it.  Our  book  one  morning  was 
crammed  with  orders,  intricate  and  plain.  Stop 
orders,  regular  way,  6-30,  S-go,  discretionary. 

Along  came  a  broker  friend,  my  partner 
[82] 


QUA 


H3WHOD    X83WHX5IOW 
0\8I   .8T335IT8   Y5I3MOOXWOM 


I  rather  buy  and  sell  si 

My  young  broker  friends,  permit  me  to  gn 
this  experience:   In  1873,  through  a  cu 
tonier,  I  lost  everything,  and  for  nearly  tv 
years  was  employed  as  a  broker's  bn 


"Now,"  said  my  friend,  "I  don't 
want  your  views  as  to  whether  the  market  will 
be  better  tomorrow  or  not ;  when  I  give  you  an 
order  to  buy,  bu: 

There  was  only  one  member  younger  than 
r.e  Board,  and  this  advice  to  a  young  man 
cnde.  himself  in  exec 

orders  o<  ;i  tne 

e  was  f  c 


would  peri1  k  one  morning 

.rammed  with  orders,  intricate  and  plair 

igular  way,  6-30,  8-90.  onary. 

Along   came  a   broker  friend,   my  parti 

NORTHWEST    CORNER    CALIFORNIA    AND 
MONTGOMERY   STREETS,   1870 


Stock  and  Exchange  Board 


afterwards,  with  an  immense  order.  Just  think 
of  it!  I  at  first  refused,  but  finally  agreed  to 
take  this  order,  in  addition  to  the  other  busi- 
ness. But  if  you  simply  pay  attention  to  your 
business  orders,  a  way  will  be  found  out  of  all 
of  them. 


Great  Business 
of  1874-1875 


[83] 


COMPANY  OF  ASSOCIATED 
STOCK  BROKERS 


History  of  the  Sanfrandsco 
Stock  and  Exchange  Board 


CHAPTER  IX 

COMPANY    OF    ASSOCIATED    STOCK 
BROKERS 


S  previously  stated,  we  in- 
creased the  membership 
20  members,  the  sale  of 
these  seats  amounting  to 
$500,000,  the  money  being 
applied  towards  buying  a 
lot  and  erecting  a  build- 
ing. 

The  Company  of  Asso- 
ciated Stock  Brokers  was  formed,  consisting 
of  all  of  the  members  of  the  Board,  to  which 
was  deeded  all  of  our  property,  and  the  Con- 
stitution was  so  arranged  that  when  one  be- 
came no  longer  a  member  of  the  Board,  he 
ceased  also  to  continue  a  member  of  the  Com- 
pany of  Associated  Stock  Brokers.  We  held 
many  long  executive  sessions,  forming  the 
Constitution  and  By-Laws  of  the  new  corpora- 
tion, which  General  W.  H.  L.  Barnes,  the 
eminent  attorney,  always  attended ;  each  word, 
clause,  sentence  and  article  prepared  by  him 
was  then  adopted  by  vote. 


Company  of 
Associated 
Stock  Brokers 


History  of  the  Sanfhmdsco 


Company  of 

Associated 

Stock  Brokers 


On   June    24,    1875,    the    Constitution 
adopted. 

The  following  were  the  first  officers  elected, 
June  23,  1875:  John  W.  Coleman,  President; 
Edward  E.  Eyre,  Vice-President ;  Henry 
Schmeidell,  Treasurer;  Franklin  Lawton, 
Secretary. 

Prior  to  this,  James  R.  Keene  had  pur- 
chased a  lot  on  the  south  side  of  Pine  street, 
below  Montgomery,  and  we  had  agreed  to  take 
it  off  his  hands  at  the  purchase  price  and  cus- 
tomary interest. 

On  Saturday,  June  25,  1875,  the  following 
deeds  were  placed  on  record: 

"James  C.  Flood  to  the  Company  of  Asso- 
ciated Stock  Brokers,  conveying  the  property 
on  the  south  side  of  Pine  street,  137^2  feet  east 
of  Montgomery,  being  27^  feet  by  137^2  feet; 
consideration  $50,000 ;"  and  another  deed  from 
James  R.  Keene,  deeding  the  adjoining  piece 
of  property,  on  the  west,  to  the  same  com- 
pany, 50x1375^  feet;  consideration  $143,700. 

We  continued  in  the  building  on  California 
street  awaiting  the  erection  of  our  new  build- 
ing— a  wait  of  two  years.  On  April  27,  1876,  in 
the  afternoon,  preceded  by  a  brass  band,  we 
formed  in  line  and  marched  around  to  lay  the 
corner  stone  of  the  new  building.  Con.  O'Con- 
nor was  the  superintendent  and  D.  Farquehar- 
son,  the  architect.  Ten  months  had  elapsed 
[88] 


Stock  and  Exchange  Board 


since  the  purchase  of  the  lot.  A  copper  box 
was  prepared  in  which  were  placed  coins,  all 
the  city  newspapers  of  that  day,  Constitution 
and  By-Laws,  and  many  little  nick-nacks ;  also 
Keene  left  us  for  a  few  minutes,  and  returned 
with  ten  shares  of  Savage,  worth  about  $19  a 
share  at  the  time,  to  be  placed  in  the  box.  A 
facsimile  engraving  of  this  Savage  certificate 
appears  on  the  cover  of  this  book.  We  were 
all  asked  for  50  cent  pieces,  of  a  date  from 
1876  back  as  far  as  possible.  All  volunteered 
but  one  only  of  each  year  was  wanted. 

Finally,  when  the  box  was  placed  in  posi- 
tion and  President  Coleman  had  just  with- 
drawn his  head,  down  fell  the  stone,  just  escap- 
ing Coleman,  and  splashing  us  all  with  mortar. 

It  was  a  solid,  magnificent  building,  the 
Board  room  being  furnished  in  splendid  style. 

On  Monday,  October  i,  1877,  we  held  our 
first  session  in  the  new  room,  the  galleries 
being  crowded,  several  of  the  younger  branches 
of  the  families  of  the  members  being  admitted 
to  the  floor.  The  official  list  of  the  transactions 
of  that  day  was  printed  in  gold  letters. 

We  sold  the  building  in  1903,  but  continued 
business  in  the  Board  room  at  a  monthly  rental. 
It  was  blown  up  and  burned  in  the  great  fire 
of  April,  1906,  totally  uninjured  by  the  earth- 
quake of  that  date. 

While  the  Sierra  Nevada  and  Union  deal  of 
[89] 


Company  of 
Associated 
Stock  Brokers 


History  of  the  Sanfrancisco 


Company  of 

Associated 

Stock  Brokers 


1878-1879  paid  us  large  commissions,  the  old 
Board  room  on  California  street  was  the  place 
where  our  greatest  business  occurred. 

On  April  27,  1909,  just  33  years  afterwards 
to  the  day,  Messrs.  Maurice  and  Joseph 
Schmitt,  representing  the  purchasers  of  the  old 
building,  presented  us  with  that  old  copper 
box,  with  its  contents,  all  well  preserved,  and 
constituting  fine  relics  of  the  great  earthquake 
of  April  1 8,  1906,  and  the  four  subsequent 
days  of  fire. 

The  crowds  of  people  flocking  to  the  Board 
room  compelled  us  to  charge  a  monthly  ad- 
mission fee  of  $5,  for  which  a  ticket  of  admis- 
sion was  given.  A  stupid,  deplorable  incident 
occurred.  E.  J.  Baldwin,  one  of  our  largest 
operators,  was  hurriedly  seeking  admission, 
and  for  some  reason  did  not  have  his  ticket 
with  him,  and  the  doorkeeper,  with  less  tact 
than  sense,  refused  to  admit  him.  He  left  in 
a  rage  and  threatened  to  establish  a  new  Board, 
which  he  did. 

Many  sought  admission  to  the  new  Board — 
the  Pacific  Stock  Exchange — the  seats  readily 
selling  at  the  initiation  price,  $5000.  The  Ex- 
change was  organized  about  May  19,  1875,  and 
opened  June  7,  1875.  On  September  8,  1904, 
it  was  absorbed  by  the  San  Francisco  Stock 
and  Exchange  Board. 

The  following  is  a  record  of  the  stocks,  and 
[90] 


Stock  and  Exchange  Board 


the  order  in  which  they  were  called  in  the 
Board  April  27,  1876: 

WASHOE 
Globe 

Baltimore  Consolidated 
Silver  Hill 

Challenge  Consolidated 
Dayton 
Rock  Island 
Pictou 
Dardanelles 
New  York 
Occidental 
Senator 
Phil  Sheridan 
American  Flat 
Tyler 
Sutro 

South  Overman 
Fairmount 
Alta 

Woodville  Con.  S.  M.  Co. 
Silver  Cloud 

Insurance  G.  &  S.  M.  Co. 
Segregated  Caledonia 
Alamo 

Mint  G.  &  S.  M.  Co. 
Franklin 
Nevada 

South  Comstock 
Lady  Washington 
Kossuth 

Green  G.  &  S.  M.  Co. 
Original  Gold  Hill 


Ophir 

Mexican 

Gould  &  Curry 

Best  &  Belcher 

California 

Savage 

Consolidated  Virginia 

Chollar-Potosi 

Hale  &  Norcross 

Crown  Point 

Yellow  Jacket 

Imperial 

Kentuck 

Alpha 

Belcher 

Confidence 

Sierra  Nevada 

Utah 

Daney 

Bullion 

Exchequer 

Segregated  Belcher 

Overman 

Justice 

Succor 

Union  Consolidated 

Buckeye 

Lady  Bryan 

Julia 

Caledonia 


Knickerbocker 

Crown  Point  Extension    Columbia 

[91] 


Company  of 
Associated 
Stock  Broken 


Company  of 

Associated 

took  Brokers 


History  of  the  Sanfrancisco^ 


Lower  Comstock 

Segregated  Rock  Island 

Genesee 

Crown  Point    Ravine 

Jacob  Little  Cons. 

Leo 

Baltic  Cons. 

Whitman 

Patten 

Andes 

Keystone 

Cons.  Washoe 

Independent  and  Omega  Crome 

South  Star  Morning  Star 


Beach  &  Paxton 
Bonanza 
Amazon  Cons. 
North  Cons.  Virginia 
Golden   Fleece  G.  &  S. 

Co. 

Prospect 
Pioneer  Cons. 
South  California 
Seg.  Gold  Hill 
Maryland 
Washoe  M.  Co. 


M 


Mides 

Dexter 

Florida 

Europa 

Hartford 

Pacific 

Granada 

North  Utah 

American  Flat  South 

Central  Comstock 

Silver  Central  Cons. 

Wells-Fargo 

North  Carson 

Niagara 

Comstock 

Ward 

Scorpion 

Cosmopolitan 

Leviathan 

Georgia 

Original  Flowery 

South  Justice 


Glasgow 
Monumental 
West  Belcher 
Chonta 
Santa  Rosa 
Sullivan 
Trojan 
Rocky  Bar 
Webber 
Silver  City 
North  Monumental 
Vivian 
Erie  Cons. 
Cherokee 

Lee  G.  &  S.  M.  Co. 
North  Ophir 
Brooks 
Peytona 
Benton 
Boyle 
Santiago 
Rough  &  Ready 
[92] 


Stock  and  Exchange  Board 


Meadow  Valley 

Raymond  &  Ely 

Eureka  Cons. 

Jackson 

Phoenix 

Pioche 

Washington  &  Creole 

Alps 

Page  &  Panaca 

American  Flag 

Adams  Hill 

Chapman 

Condor 

S.  Peak 

Pioche  W.  Extension 

Belmont 

Spruce  Mountain  Tunnel 

Chief  of  the  Hill 

Newark 

Louise 

Juanita  Cons. 

Monitor  Belmont 

Silver  West  Cons. 

Rye  Patch  Cons. 

Eldorado  South 

K.  K.  Cons. 

Hayes  G.  &  S.  M.  Co. 

RAILROAD 

Omnibus 
Central 


Watson 

Eldorado  North 

Prussian 

Cherry  Creek 

Webfoot  M.  Co. 

Leopard 

Jefferson 

Gila 

Cornucopia 

Constitution 

Panther 

Tiger 

Northern  Belle 

Geneva  Cons. 

Hussey 

Tybo  Cons. 

Geddes  &  Bertd  M.  &.  M. 

Co. 

Gen.   Thomas  M.  &  M.  Co. 
Manhattan 

De  Frees  M.  &  M.  Co. 
Metallic 
Indian  Queen 
City  Gaslight  Co. 
Spring  Valley  Water  Co. 
Legal  Tender  Notes 

COMPANIES 

N.  Beach  &  Mission 

Front  St.  &  O.  R.  R. 


CALIFORNIA  COMPANIES 
Cons.  Amador  Independent  G.  M.  Co. 

Eureka  Cederberg 

St.  Patrick  Genesee  Valley 

[93] 


Company  of 
Associated 
Stock  Brokers 


History  of  the  Sanfrancisco 


Chariot  M.  &  M.  Co.  Advance  S.  M.  Co. 

Mansfield  G.  M.  Co.  Coso  Cons. 

Western  Almaden  Quick-Defiance 

silver  New  Coso 

Modoc  Cons.  Garibaldi 

PANAMINT  DISTRICT 
Wyoming  Cons.  Wonder  Cons. 


Company  of 

Associated 

Stock  Brokers 


IDAHO 

Silver  Cord 

Poorman 

Illinois  Central 

Pauper 

South  Mountain  Cons. 


Golden  Chariot 
Ida  Ellmore 
South  Chariot 
War  Eagle 
Empire 
Red  Jacket 

WHITE   PINE   DISTRICT 
Mammoth  Silver  Wave 

Or.  Hidden  Treasure 

UTAH 
Wellington 

OREGON 
Virtue 

From  the  list  it  will  be  seen  that  there  were 
135  Washoe  stocks  called;  in  other  words, 
those  mines  located  on  the  Comstock  Lode 
and  in  its  vicinity.  The  Comstock  Lode  itself 
extended  about  two  miles.  It  commenced  some 
distance  north  of  Virginia  City,  and,  passing 
south  through  Virginia  City  and  Gold  Hill, 
extended  to  Silver  City.  The  principal  mines 
were  in  Virginia  City  and  Gold  Hill. 

A  large  number  of  mines  were  located  west 
of  the  lode,  extending  up  Mount  Davidson  and 

[94] 


-TMOM    QKA 


5I3MHOO    T3A3HTUO8 
0881    ,8T335IT8    YH3MOO 


Western  Almaden  Quick-Defiance 

New  Coso 
Modoc  Cons*  Garibaldi 

PANAMINT  DISTRICT 
Wyoming  Cons. 


Wellington 

OREGON 


were  in  Virginia 

A  large  number  c  e  located  west 

of  the  lode,  extending  up  Mount  Davidson  and 

SOUTHEAST    CORNER    PINE    AND    MONT- 
GOMERY    STREETS,    1880 


Stock  and  Exchange  Board 


adjacent  hills,  and  a  large  number  east  on  the 
down  slope  of  the  mountains. 

Speculation  was  more  conspicuous  in  those 
companies  whose  claims  were  located  on  the 
main  lode.  The  ledge  dipped  east,  and  an  early 
decision  in  the  courts  confirmed  the  titles  of 
the  lode  locators  wherever  they  could  trace 
their  ledge.  As  they  never  drifted  west  through 
the  hard  west  wall,  little  attention  was  paid  to 
adverse  western  locations.  In  prospecting  to 
the  east,  following  the  dip  of  the  ledge,  they 
opened  the  lower  levels  directly  under  the 
many  adverse  eastern  locations.  Many  law- 
suits were  instituted  until  the  sweeping  de- 
cision confirmed  title  to  the  lode  locations. 

The  following  dialogue  about  expresses  the 
situation : 

"What  is  the  true  location  out  here  on  the 
side  of  Mount  Davidson?'*  "Well,  stranger,  it 
is  about  this  way.  There  h'aint  but  one  lode 
along  here.  Them  locations  east  and  west  of 
this  great  lode  is  only  to  sell  to  tenderfeet." 

"Well,  if  that  is  so,  what  are  the  boundaries 
of  this  great  lode?"  "Well,  stranger,  the  boun- 
daries of  this  great  lode  is  as  follows:  The 
foot-wall  is  the  diorite  of  Mount  Davidson,  and 
the  hanging  wall  is  Salt  Lake  City.  All  quartz 
within  them  boundaries  is  the  Comstock 
Lode." 

At  the  election,  January,  1875,  Mr.  James  R. 
[95] 


Company  of 
Associated 
Stock  Brokers 


History  of  the,  Sanfraneisco 


Company  of 

Associated 

Stock  Brokers 


Keene  was  placed  in  nomination  for  the  office 
of  president  by  F.  F.  Strother.  Keene  was 
elected  and  served  until  Tuesday,  August  3, 
1875,  when  he  resigned,  and  the  vice-president, 
Mr.  Coll  Deane,  was  elected  president.  Charles 
W.  Bonynge  was  elected  vice-president. 

On  August  25,  1875,  General  Phil  Sheridan 
was  a  visitor  at  the  Board. 

The  firm  of  Flood  &  O'Brien  had  been  very 
successful  in  mining  transactions,  James  G. 
Fair  and  John  Mackay  being  also  connected 
with  it.  After  the  great  discovery  in  Califor- 
nia and  Consolidated  Virginia,  they  were 
called  the  Bonanza  firm.  Heretofore  those 
operators  connected  with  the  Bank  of  Cali- 
fornia had  been  dictators  of  the  stock  market, 
but  now  the  Bonanza  firm  loomed  up  and  were 
the  dictators,  as  to  their  own  stocks  at  least. 

Finally,  when  the  Bank  of  California 
suspended,  crippling  those  operators  to  some 
extent,  Mr.  James  C.  Flood,  as  the  representa- 
tive of  his  firm,  became  the  great  leader  in  the 
stock  board. 

The  following  was  repeated  generally  in  the 
Board :  Mr.  Ned  Barren,  at  one  time  president 
of  Consolidated  Virginia  and  for  years  well 
connected  with  the  Bonanza  firm,  in  some  way 
became  persona  non  grata  with  the  firm.  He 
determined  to  sell  his  Consolidated  Virginia; 
but  how  could  he  do  so  without  the  firm  know- 

[96] 


Stock  and  Exchange  Board 


ing  it,  with  whom  for  years  he  had  been  on 
intimate  terms.  He  was  friendly  with  a  broker 
and  went  to  him  and  frankly  confessed  to  him 
the  whole  situation.  He  asked  him  to  take  his 
stock  in  the  Consolidated  Virginia  and  Cali- 
fornia and  sell  it,  and,  in  order  to  conceal  the 
fact  that  he  was  selling  from  the  Bonanza  firm 
and  others,  he  requested  the  broker,  on  the  sale 
of  the  stock,  to  deliver  other  shares  in  his  pos- 
session, and,  when  all  sold,  to  have  his  stock 
transferred  to  the  broker's  clerks,  and  with  it 
replace  the  certificates  already  delivered.  In 
those  days  the  legal  decisions  were  such  that 
any  good  certificate  could  be  delivered  on  any 
sale.  Mr.  Barren  was  accommodated,  his  stock 
sold,  and  the  money  paid  to  him  before  the 
Bonanza  firm  or  outsiders  knew  anything 
about  it. 


Company  of 
Associated 
Stock  Brokers 


[97] 


SUSPENSION  OF  THE  BANK  OF 
CALIFORNIA 


History  of  the  Sanfrandsco 
Stock  and  Exchange  Board 


CHAPTER  X 

SUSPENSION    OF    THE    BANK    OF 
CALIFORNIA 


HOULD  any  one  have  said 
to  the  average  business 
man  of  San  Francisco  on 
Thursday,  August  26,  1875, 
that  the  Bank  of  California 
would  suspend  that  day; 
well,  he  would  not  have 
been  believed.  The  bank 
was  regarded  in  the  same 
light  as  the  United  States  Treasury.  Should 
that  average  business  man  have  visited  the 
bank  at  2  P.  M.  he  would  have  seen  a  small 
crowd  at  the  paying  teller's  counter,  but  that 
always  occurs  at  all  banks  an  hour  before  clos- 
ing. At  a  quarter  past  2  he  would  have  seen 
the  crowd  extending  to  the  iron  doors  on 
California  street.  At  half  past  2  the  crowd 
was  out  to  the  curb,  and  at  2 140  he  would  have 
observed  Mr.  Ralston,  bareheaded,  walk  over 
to  Nicolson,  the  paying  teller,  direct  him  to 
pay  out  no  more  money  and  order  the  porters 
to  close  the  iron  doors. 

[101] 


Suspension  of 
the  Bank  of 
California 


History  of  the  Santrancisco 


Suspension  of 

the  Bank  of 

California 


A  very  few  of  us  knew  before  the  Board 
opened  that  the  bank  would  close  at  3  P.  M. 
and  not  re-open  the  next  day.  The  large  firm 
of  Edward  F.  Hall  &  Co.  drew  out  early  on  one 
check  $250,000.  Jos.  H.  Jones  had  $75,000  to 
his  credit,  but  would  not  believe  anything 
derogatory  to  the  bank  and  allowed  his  money 
to  remain  there.  I.  Glazier  &  Co.  allowed 
$400,000  to  stand  to  their  credit. 

Maurice  Schmitt  presented  $14,000  in  checks 
to  Nicolson,  the  paying  teller,  at  the  Bank  of 
California,  at  n  o'clock  in  the  morning.  Was 
eventually  referred  to  Mr.  Ralston,  told  to  wait 
a  short  time  and  re-present  them,  and  then 
told  his  own  banker  of  the  matter,  who  begged 
of  him  not  to  mention  the  incident,  as  the  Bank 
of  California  was  as  solid  as  any  bank  in  the 
city.  He  obtained  the  money  a  short  time  after- 
wards. 

Parker  &  Fry  cashed  all  checks,  received 
from  sales  of  stocks,  and  when  night  came  they 
had  $150,000  in  their  safe. 

E.  P.  Peckham  gave  a  number  of  checks  to 
personal  friends,  asking  them  to  call  at  the 
bank  and  cash  them. 

E.  J.  Baldwin  had  a  million  dollars  to  his 
credit  in  the  bank.  On  condition  that  a  mem- 
ber of  his  family  should  be  paid  $250,000  of  this 
sum,  he  agreed  to  allow  the  balance  to  remain 
in  the  bank  until  it  was  convenient  to  pay  it. 

[  102  ] 


KOT2JAH  .0   MAIJJIW 


A  e  the  ; 

opened  that  the  bank  w  -e  at  3 

and  not  re-open  the  next  day.  The  large  firm 
of  Edward  F.  Hall  &  Co.  drew  out  early  on  one 
check  $250,000.   Jos.  H.  Jones  had  $75,000 
his   credit,  but  would   not  believe  anything 
derogat  ved  his  money 

to   remain  /ed 


.e  matter,  who  begged 

of  him  not  to  mention  the  incident,  as  the  Bank 
of  California  was  as  solid  as  any  bank  in  the 
city.  He  obtained  the  money  a  short  time  after- 


ivea 


ber  of  his  fa  $250,000  of 

sum,  he  agreed  to  e  balance  to  rei 

WILLIAM  C.  RALSTON 


Stock  and  Exchange  Board 


The  Board  had  quite  a  large  amount  to  its 
credit  which  was  allowed  to  remain  on  deposit 
for  a  long  time. 

Careful  brokers  withdrew  their  deposits; 
they  had  to  do  it  to  protect  their  checks  drawn 
on  the  bank.  But  the  afternoon  found  many 
brokers  so  tied  up  they  could  not  instantly 
meet  their  checks  when  refused  at  the  closed 
doors  of  most  of  the  banks. 

Only  two  or  three  banks  opened  the  next 
morning,  August  27,  1875. 

At  the  present  writing,  nearly  34  years  sub- 
sequent to  that  event — that  panic,  as  it  was 
termed — it  would  be  of  service  should  every 
one  living  who  passed  through  that  trying  time 
record  his  experience  for  the  benefit  of  pos- 
terity. I  will  relate  mine. 

On  April  i,  1875,  I  formed  a  co-partnership 
with  B.  F.  Sherwood.  My  partner  went  East, 
and  returned  about  the  middle  of  August,  1875. 
On  his  first  appearance  at  the  office  after  his 
return,  I  called  him  into  our  private  office,  and 
told  him  there  was  something  wrong  at  the 
Bank  of  California,  and  for  him  to  ascertain 
what  the  trouble  was.  It  was  difficult  for  him 
at  first  to  believe  that  anything  could  be  wrong, 
and  asked  my  reason.  I  told  him  the  brokers 
were  talking  quietly,  among  themselves,  about 
the  large  transfers  of  real  estate  by  the  officers 
of  the  bank,  and  as  we  had  a  large  balance  to 
[103] 


Suspension  of 
the  Bank  of 
California 


History  of  the  SanFrancisco 


Suspension  of 

the  Bank  of 

California 


our  credit  it  would  be  wise  to  protect  our- 
selves. He  promised  to  attend  to  it  instantly. 

For  several  mornings  he  met  Mr.  Sharon  at 
10  A.  M.,  but  the  subject  had  not  yet  been 
broached.  Finally,  early  on  Thursday,  the  26th 
of  August,  he  called  me  into  the  private  office 
and  closing  the  door,  said:  "You  are  right. 
The  Bank  of  California  will  close  this  after- 
noon at  3  P.  M.  and  not  reopen  tomorrow. 
Now,  we  have  $116,000  to  our  credit — what 
course  do  you  propose?  Should  we  draw  it  all 
out  in  one  check,  we  would  lose  their  business 
forever." 

My  answer  was:  "I  have  been  over  the 
books  just  now;  we  have  issued  checks  for 
$130,000  for  purchases  of  yesterday,  and  it 
seems  we  are  to  receive  $130,000,  or  there- 
abouts, for  the  sales  of  yesterday.  I  suggest 
that  we  hand  out  our  checks  as  usual  for  the 
purchases,  and,  as  to  the  checks  that  we  re- 
ceive for  our  sales,  I  suggest  that  we  cash 
them  all,  whether  drawn  on  the  Bank  of  Cali- 
fornia or  any  other  bank,  and  retain  the  money 
in  the  office."  By  this  action  we  would  have 
money  enough  to  meet  any  of  our  checks  not 
cashed  at  the  bank. 

Said  Sherwood :  "Well,  if  you  agree  to  that, 
all  right."  So  I.  sent  one  clerk  to  the  stationer 
for  some  10  or  12  canvas  money  bags,  and 
called  the  other  clerks  to  the  desk  and  gave 


Stock  and  Exchange  Board 


them  the  order  about  cashing  all  checks  that 
came  in  that  day,  to  deliver  everything  in- 
stantly, and  to  have  the  money  in  the  sacks 
when  I  returned  from  the  n  o'clock  Board. 
The  clerks  knew  nothing  about  the  trouble  in 
the  bank. 

On  entering  we  looked  around  in  that  n 
o'clock  Board,  to  ascertain  whether  others 
knew  of  the  great  fact  concerning  the  bank, 
for,  in  the  way  it  came  to  us,  it  would  have 
been  dishonorable  to  have  revealed  the  infor- 
mation, and  it  would  have  hastened  the  calam- 
ity, which  might  yet,  possibly,  be  staved  off. 
Each  countenance  had  its  usual  expression; 
the  members  were  laughing,  jostling  and  set- 
tling into  chairs.  But  there  must  have  been 
some  favored  few  who  knew  of  the  expected 
catastrophe  and  of  the  hard  fight  we  were 
about  to  have  on  that  floor. 

Flood  &  O'Brien  had  become  the  great  lead- 
ers in  the  stock  market,  through  their  great 
success  in  Consolidated  Virginia  and  Califor- 
nia, and  at  times  the  orders  this  firm  sent  into 
the  Board  were  large.  But  any  order  sent  into 
the  Board,  by  them  or  any  other  operator;  in 
fact,  any  order  ever  executed,  in  regular  or 
informal  session,  was  dwarfed  by  the  great 
selling  order  sent  by  Sharon  into  the  1 1  o'clock 
session.  The  order  was  sent  to  Woods  &  Free- 
born,  and  executed  by  B.  B.  Rorke,  their  broker 


Suspension  of 
the  Bank  of 
California 


History  of  the  SanFrandsco 


Suspension  of 

the  Bank  of 

California 


in  the  Board.  Rorke,  merely  looking  at  his 
book  as  each  stock  was  called,  and  closing  it 
with  a  ringer  at  the  proper  page,  sold  as  long 
as  there  was  a  bid  on  the  floor,  keeping  as  near 
as  possible  to  the  closing  price  of  each  stock  at 
the  preceding  Board. 

After  the  first  two  or  three  stocks  were 
called,  the  nature  of  Rorke's  order  was  evident 
to  a  few  of  us.  It  had  all  the  earmarks  of  an 
unlimited  order,  to  sell  on  each  stock  as  long 
as  there  was  a  bid — to  strive  not  to  break  the 
price  too  much,  but  to  sell,  sell.  As  the  order 
developed  itself,  buyers  became  shy  and  wary. 
Selling  thus  became  difficult,  and  only  a  part 
of  the  immense  order  could  be  executed  on  the 
call. 

Rorke  did  not  record  a  single  transaction, 
nor  enter  a  sale  in  his  book.  The  purchasers 
were  expected  to  record  their  transactions, 
and,  as  to  the  extent  of  his  sales,  a  clerk  from 
Woods  &  Freeborn  could  take  a  copy  of  them 
from  the  record  when  written  up.  He  could 
possibly  have  taken  his  record,  as  the  secre- 
tary read  it  at  the  end  of  the  session,  to  get  an 
idea  of  about  the  amount  sold,  but  a  copy  of 
the  record  would  be  exact. 

A  clerk  also  was  at  the  desk,  who  prepared 
for  the  members  a  quick  abstract  of  the  records 
at  the  close  of  the  call,  and  compared  as  the 
Secretaries  read  the  transactions. 
[106] 


ti 


QMA  XDOTS  ODSIOMASTPI: 

,oniajiua  GHAOS 


ager  at  the  proper  page,  sold  « 
ere  was  a  bid  on  the  floor,  keeping  as  nei 
as  possible  to  the  closing  price  of  each  stock  « 
the  preceding  Be 


call. 

Rorke  did  not  record  a  single 
nor  enter  a  sale  in  his  book.   The 

record   their   trans 


rds 
the  clos 

ies  read  the  transactions. 

SAN  FRANCISCO  STOCK  AND  EXCHANGE 
BOARD  BUILDING,  OCCUPIED  OCTOBER  1. 
1877 


Stock  and  Exchange  Board 


Prices  on  the  three  principal  stocks  as  com- 
pared with  the  previous  day  were  as  follows: 

August  25,  1875 

California    59^@  56 

Consolidated  Virginia  290    @263 

Ophir    54 

August  26,  1875 

California    56^ 

Consolidated  Virginia 267^@250 

Ophir 55     @  43 

After  the  Board,  prices  were  still  lower  on 
this  memorable  day : 

California   sold   at 48 

Consolidated  Virginia  sold  at 240 

Ophir  sold  at 36 

Still,  at  the  close  of  the  call  no  one  men- 
tioned the  great,  expected  catastrophe.  On 
entering  my  office  after  the  call,  one  could  see 
a  number  of  money  bags,  containing  $20,000 
each,  piled  up  in  the  center.  Expressing  annoy- 
ance at  this  exhibition,  the  bags  were  imme- 
diately hidden  in  the  loop  of  the  bookkeeper's 
desk  and  eventually  placed  in  the  office  vault. 

We  went  through  the  routine  of  the  office 
business  until  2  o'clock,  when  the  informal 
afternoon  session  began,  and  still  the  great 
news  was  not  generally  mentioned  about  the 
Board,  although  a  few  spoke  of  a  run  on  the 
bank.  Shortly  after  2,  I  went  over  to  our 
office,  which  was  in  the  basement  next  to  the 
bank,  and  reported  to  my  partner. 
[107] 


Suspension  of 
the  Bank  of 
California 


History  of  the  SanFrandsco 


Over  to  the  Board  again,  made  a  few  trans- 
actions, back  again  at  a  quarter  past  2,  with 
the  remark:  "Sherwood,  the  crowd  is  out  to 
the  iron  doors."  His  reply:  "Yes,  they  will 
close  at  3."  Over  to  the  Board  again,  more 
transactions  (sales);  back  again  at  2:30,  and 
again:  "Sherwood,  the  crowd  is  out  to  the 
street."  The  same  answer:  "Yes,  they  will 
close  at  3." 

After  reporting  transactions  on  this  occasion, 
I  looked  into  the  bank  over  the  heads  of  the 
crowd,  say  about  2 :4O  P.  M.,  and  Mr.  Ralston 
was  at  the  counter  with  Nicolson,  the  paying 
teller.  Obviously,  the  order  was  given  to  pay 
out  no  more  money.  The  porters  closed  the 
iron  doors,  and  the  great  Bank  of  California 
had  suspended. 

In  place  of  the  regular  session  at  3  P.  M.  we 
held  a  private  executive  session,  at  which 
George  W.  Smiley  offered  a  resolution,  the 
purport  of  which  was  that  the  Board  should 
adjourn  to  the  call  of  the  president,  and  all  mat- 
ters were  to  be  referred  to  the  executive  com- 
mittee. Carried. 

We  remained  late  that  afternoon  at  our 
offices.  We  had  $100,000  in  our  vaults,  and 
blankets  and  mattresses  were  brought  in,  two 
[108] 


Stock  and  Exchange  Board 


or  three  clerks  sleeping  there  guarding  our 
treasure.  John  W.  Shaw  came  to  the  office  and 
wanted  the  $100,000.  He  said  it  would  save 
the  National  Gold  Bank  and  Trust  Co.,  of 
which  Henry  L.  Davis  was  president.  But  we 
could  not  part  with  it;  we  had  to  take  care  of 
ourselves. 

We  could  not  learn  until  the  next  day  how 
we  stood  at  the  bank.  Our  books  showed  that 
we  were  $12,000  overdrawn;  some  checks  came 
in,  which  were  promptly  cashed. 

August  2yth  we  were  all  at  our  offices  en- 
deavoring to  close  up  unsettled  contracts.  In 
the  afternoon  a  meeting  of  the  directors  of 
the  bank  was  held.  It  was  stated  that  a  direc- 
tor left  the  meeting,  and  approaching  Mr.  Ral- 
ston at  his  desk,  informed  him  that  he  was  no 
longer  connected  with  the  bank.  Mr.  Ralston 
made  a  short  address  to  the  clerks,  and  left 
by  the  Sansome  street  entrance.  A  few  hours 
afterwards,  while  all  were  at  work,  came  the 
astounding  intelligence  that  Mr.  Ralston  was 
drowned ;  that  he  had,  as  usual,  gone  to  North 
Beach  to  take  his  daily  salt  water  bath,  and 
while  out  quite  a  distance  had  been  overcome 
and  drowned. 

This  news  practically  stopped  all  business, 

and  little  gatherings  could  be  seen  everywhere 

on  California  street,  discussing  the  matter,  all 

of  us  hoping  the  rumor  would  be  found  to  be 

[109] 


Suspension  of 
the  Bank  of 
California 


History  of  the  Sanfrandsco 


Suspension  of 

the  Bank  of 

California 


false.  We  did  not  want  to  believe  it.  All  doubt 
about  the  matter  was  soon  settled.  As  I  was 
standing  on  the  sidewalk  by  my  office,  the  glass 
door  of  the  president's  office  opened  and  Col. 
Fry  came  out.  He  approached  me,  and,  shaking 
hands  with  him,  my  question  was,  "Colonel,  is 
it  true?"  "Yes,"  he  answered,  "the  body  is  on 
a  sofa  in  the  parlor  at  the  house  now." 

On  Monday,  August  30,  1875,  we  assembled 
at  the  Board,  and  entering  carriages,  were 
driven  to  the  Calvary  Church,  on  the  corner  of 
Powell  and  Geary  streets,  where  the  St.  Francis 
Hotel  now  stands,  and  attended  the  funeral 
services  of  Mr.  Ralston,  also  following  the  body 
to  Lone  Mountain  Cemetery.  All  of  us  living 
today  who  attended  that  funeral  retain  the 
kindest,  warmest,  most  tender  recollections  of 
William  C.  Ralston. 

A  singular  incident  in  connection  with  the 
bank  failure  occurred  with  Woods  &  Freeborn  * 
and  ourselves.  We  gave  them  checks  amount- 
ing to  $25,000  for  stock  purchased,  and  they 
marked  on  their  tags  the  word  "office,"  repre- 
senting thus,  that  they  had  left  the  stock  in  the 
offices  of  the  several  mining  companies  to  our 
credit,  and  we  could  call  and  get  them,  a  cus- 
tom usual  among  brokers.  The  stocks  were  not 
left  in  the  offices.  On  asking  the  following 
morning  for  an  explanation,  they  claimed  to 
have  deposited  our  checks  with  the  London 

[HO] 


Stock  and  Exchange  Board 


and  San  Francisco  Bank,  and  they  had  been 
returned  to  them  as  unpaid.  They  showed  us 
the  checks,  calling  them  worthless  paper,  and 
demanded  good  checks  or  the  money,  when 
they  would  deliver  the  stocks. 

But  the  singular  fact  concerning  those  checks 
was  this:  They  had  taken  them  to  the  Bank 
of  California,  and  instead  of  cashing,  had  them 
certified.  This  action,  under  commercial  law, 
released  us;  they  had  accepted  the  bank.  On 
representing  it  this  way  to  them  they  still 
refused  to  deliver  the  stocks  unless  we  paid  the 
money.  As  one  firm  was  not  unduly  forcing 
another  this  matter  was  left  in  abeyance. 
About  two  weeks  after  the  suspension,  Mr. 
Sharon  came  to  our  office  with  a  proposition — 
and,  let  me  say  right  here,  that  no  one  worked 
harder  than  Mr.  Sharon  to  rehabilitate  the 
bank;  he  deserved  great  praise  for  his  work. 

Mr.  Sharon  stated  that  a  syndicate  had  been 
formed  to  rehabilitate  the  bank  and  he  wanted 
us  to  subscribe  $50,000.  Mr.  Sherwood  took 
the  whole  amount  himself.  Again,  Sharon  had 
learned  that  we  held  $100,000  in  coin  in  our 
vaults.  He  wanted  some  one  to  show  confi- 
dence in  the  resumption  of  the  bank  and  our 
firm  could  do  it.  Why  not  pay  $25,000  to 
Woods  &  Freeborn  in  coin,  receive  our  stocks, 
and  deposit  the  checks  to  our  credit  in  the 
bank,  although  it  was  closed.  It  would  have  a 


Suspension  of 
the  Bank  of 
California 


History  of  the  Sanfhmcisco 


Suspension  of 

the  Bank  of 

California 


good  effect  on  the  street,  and  show  that  we,  at 
least,  felt  confident  the  bank  would  reopen.  I 
do  not  think  that  Mr.  Sharon  knew  that  our 
own  books  showed  an  overdraft  of  $12,000,  but 
we  carried  out  his  idea,  and  on  depositing  the 
checks  our  books  would  then  show  we  had 
$13,000  in  the  bank  instead  of  being  $12,000 
overdrawn. 

While  in  Virginia  City  during  this  recess, 
Mr.  Charles  Tozer  met  me  at  the  agency  of  the 
Bank  of  California,  stating  that  his  all  was  in 
that  bank ;  that  he  had  been  offered  60  cents  on 
the  dollar,  and  requesting  my  advice.  I  told 
him  the  facts  as  recorded  before,  advising  him 
to  hold  his  account  until  the  bank  opened,  when 
he  surely  would  receive  dollar  for  dollar.  He 
did  so  and  was  made  happy. 

A  committee  was  appointed  in  the  Board  to 
adjust  the  unsettled  business  of  August  26th, 
and  on  September  27th  Mr.  A.  H.  Lissak,  chair- 
man of  the  committee,  reported  that  every  con- 
tract had  been  settled. 

We  were  all  doing  some  little  business  on 
the  street,  giving  a  cash  price  to  stocks,  thus 
enabling  us  to  settle  up  the  old  business;  but 
prices  were  lower  all  around. 

Flood  &  O'Brien  were  forming  a  new  bank — 
the  Nevada  Bank — and  it  opened  Monday, 
October  4,  1875. 

The  Bank  of  California  opened  Tuesday, 
[112] 


10   XHAfl   QJO 


books  showe 


c    ou       s     < 

-,. 


he  surelj 
did  so  a: 

nittee  wi 


The 

OLD   BANK   OF   CALIFORNIA 


Stock  and  Exchange  Board 


October  5,  1875,  and  the  Stock  Board  resumed 
business  the  same  day. 

Other  cities  may  boast  of  bank  resuming 
business  quickly,  but,  taking  all  things  into 
consideration,  to  us,  at  the  time,  the  resump- 
tion of  business  by  the  Bank  of  California,  its 
prompt  payment  to  every  depositor,  and  the 
absolute  confidence  reposed  in  the  reorganized 
bank  were  marvelous,  and  San  Francisco  is 
justly  proud  of  the  history  of  this  great  insti- 
tution. 

In  the  following  year  I  was  called  to  a  bank 
in  Washington  City,  D.  C.,  and  asked  the  name 
of  a  good,  solvent  bank  in  San  Francisco,  and 
gave  that  of  the  Bank  of  California.  "Why," 
said  the  banker,  "they  only  lately  suspended." 
"Yes,"  was  my  answer,  "but  in  six  weeks  they 
paid  dollar  for  dollar,  and  your  bank  here  of 
Jay  Cook  &  Co.  failed  a  long  time  ago,  and  so 
far  has  only  paid  ten  cents  on  the  dollar."  No 
further  rejoinder  from  the  Washington  banker. 

All  brokers  and  operators  were  glad  when 
business  was  resumed  in  the  Board.  Confi- 
dence was  soon  restored  and  business  active 
again. 

In  November  we  sold  four  more  of  the  Board 
seats  at  $25,000  each,  only  one  seat  remaining. 

On  October  28,  1875,  a  great  fire  occurred  in 
Virginia  City  and  the  high  priced  stocks  broke 
badly. 


Suspension  of 
the  Bank  of 
California 


THE  GREATEST  MARKET  OF 
THE   BOARD 


History  of  the  Sanfrancisco 
Stock  and  Exchange  Board 


CHAPTER  XI 
THE  GREATEST  MARKET  OF  THE  BOARD 


ITH  the  listed  stocks  selling 
for  $350,000,000,  where  did 
the  money  come  from  to 
support  such  a  market?  An 
effort  is  being  made  to  be 
exact  in  every  statement 
contained  in  this  story, 
and  the  above  question  is 
•  difficult  to  answer. 
Upon  asking  that  question  in  the  great  mar- 
ket of  1874-1875,  the  bookkeeper  and  office 
manager  of  a  very  prominent  broker,  doing  an 
immense  business,  gave  me  this  answer:  "It 
would  be  impossible  to  transact  this  business 
without  'Shorts'  in  the  office."  Should  a  broker 
have  a  number  of  customers  who  would 
"short"  the  market  to  the  extent  in  bulk  of 
2,000  Consolidated  Virginia  and  California, 
each  of  them  depositing  a  strong  margin,  this 
would  give  the  broker  from  $1,000,000  to 
$1,500,000,  quite  a  help  to  an  office  in  1875. 

A    number   of    the    members    had    become 
wealthy,  and  used  their  money  on  time  trans- 
["7] 


The  Greatest 
Market  of 
the  Board 


History  of  the  Sanlrancisco 


The  Greatest 
Market  of 
the  Board 


actions,  receiving  the  high  rates  of  interest  paid 
in  those  days.  They  also  loaned  money  on 
proper  securities  to  their  brother  brokers. 
Almost  every  one  had  a  fair  bank  account,  and 
still  there  were  days  when  it  was  impossible 
to  borrow  at  the  banks  or  of  others. 

At  such  times,  one  method  of  obtaining 
money  would  be  to  sell  your  own  personal 
stocks  for  cash.  The  "buyer  30"  business  was 
large.  California  sold  for  $750  cash  and  $800 
"buyer  90."  Here  is  an  example :  The  moneyed 
man  would  purchase  100  shares  of 

California  at  $750  a  share $75,000 

The  purchaser  at  $800  B-90  would 
deposit 16,000 

Total  money  advanced $59,000 

The  interest,  or  profit,  of  $50  a  share  on  100 
shares  would  be  $5,000;  this  $5,000  for  carry- 
ing $59,000  for  90  days  and  the  stock  in  posses- 
sion of  the  money  lender,  or  deposited  on  con- 
tract to  his  credit  in  his  bank.  On  time  trans- 
actions we  figured  on  paying  about  3  per  cent 
a  month. 

David  Henriques  had  turned  his  attention 
entirely  to  these  time  transactions.  He  kept  his 
bank  account  with  Sather  &  Co.  His  contracts, 
with  the  stock  attached,  were  deposited  there. 
Boyd  &  Davis  were  also  loaning  brokers  money 
on  time  transactions.  They  were  not  members 
[118] 


Stock  andExchangeBoard 


of  the  Board,  but  when  their  contracts,  with  the 
stock  attached,  were  deposited  in  the  bank, 
and  Boyd's  contract  placed  in  our  hands,  and 
the  bank  clerk  certifying  the  number  of  the 
certificates  of  stock  across  the  face  of  the  con- 
tract, we  felt  perfectly  safe ;  and  it  pleased  Mr. 
Boyd  very  much  to  receive  our  3  per  cent  a 
month  and  more. 

Generally,  the  banks  had  plenty  of  money  to 
loan,  and  our  good,  high-priced  stocks  were 
readily  taken  as  security  at  50  per  cent  of  the 
market  value.  The  brokers  helped  each  other. 
A  personal  and  intimate  friend  asked  me,  on 
one  occasion,  if  I  would  step  over  to  a  certain 
bank  and  sign  a  note  for  $300,000.  It  was  for 
himself,  and  he  had  already  put  up  $700,000 
security.  The  note  was  signed,  and  a  week  or 
so  afterwards  I  was  informed  that  an  addi- 
tional $500,000  in  securities  had  been  furnished. 
In  about  sixty  days,  on  entering  his  office,  the 
note  was  handed  to  me  with  thanks  for  help- 
ing him  out. 


The  Greatest 
Market  of 
the  Board 


ANECDOTES 


History  of  the  Sanfrandsco 
Stock  and  Exchange  Board 


CHAPTER  XII 
ANECDOTES 


|  HE  excitement  engendered 
in  a  lively  stock  market  is 
such  that  in  dull  times  it 
finds  vent  in  fun,  jokes  and 
foolery.  Suppose  we  stop 
for  a  while  and  relate  some 
Board  anecdotes. 

Whenever  stocks  were 
bought  or  sold,  on  the 
street  or  in  the  Board,  Keene  would  either  be 
there  or  know  what  was  going  on.  On  a  cer- 
tain occasion  he  stood  in  the  crowd  on  the 
street,  derby  hat,  dark  suit  of  clothes,  some 
writing  paper  in  one  hand  and  a  pencil  in  the 
other,  trying  to  sell  200  Ophir  at  $64. 
Finally  he  said:  "I  know  this  200  Ophir 
is  a  buy.  If  any  one  will  take  it,  I  will  carry  it 
for  him  and  guarantee  him  against  loss.  I  can- 
not, honorably,  take  it  myself.  Must  sell  it." 

Among  the  spectators  was  Mr.  Jake  Levy, 
always  well  dressed — tall  silk  hat,  black  suit     Anecdotes 
of    clothes,    with    low-cut   vest,    showing    an 
[  123] 


History  of  the  Sanfraneisco 


Anecdotes 


I" 

elaborate  white  shirt  with  diamond  studs. 
Jake's  principal  occupation  was  dealing  in  lot- 
tery tickets;  he  made  a  good  income  peddling 
them  to  his  friends.  And  here  was  an  oppor- 
tunity to  purchase  some  valuable  stock  with- 
out any  risk,  so  he  came  promptly  forward 
and  accepted  the  purchase  under  the  liberal 
terms  offered  by  Keene.  He  afterwards  sold 
the  stock  at  high  figures,  bought  a  lot  just  west 
of  Van  Ness  avenue,  somewhere  about  Mc- 
Allister or  Fulton  street,  erected  two  houses, 
all  out  of  the  profits  of  the  transaction,  and 
enjoyed  the  rents  like  any  other  millionaire. 

In  Keene's  early  days  in  the  Board,  before 
becoming  very  wealthy,  being  worth  about 
$300,000,  he  could  foresee  a  great  market  and 
high  prices  in  the  immediate  future.  He  went 
to  Ralston,  president  of  the  bank  of  Califor- 
nia, spoke  enthusiastically  about  the  market 
and  its  future,  and  asked  for  money.  A  stout 
man,  high  forehead,  aquiline  nose,  and  a  pair 
of  eyes  that  could  read  down  into  your  inmost 
soul,  Ralston  was  the  picture,  as  he  sat  at  his 
desk,  of  a  successful  and  cautious,  yet  liberal 
banker.  His  long  experience  had  made  him  an 
excellent  judge  of  the  mercantile  community, 
and  he  could  be  quick  about  making  a  loan  or 
refusing  it. 

"How  much  do  you  want?"  said  Ralston. 

"Don't  know,"  answered  Keene,  "can't  tell 
[124] 


Stock  and  Exchange  Board 


the  exact  amount,  but  would  like  to  commence 
buying  now." 

"Well,"  said  Ralston,  "you  draw  your 
checks  and  I  will  tell  you  when  to  stop." 

It  is  said  Keene  drew  $1,300,000  before  he 
was  halted. 

Keene  was  not  always  a  winner.  While  ill  at 
home  on  one  occasion  the  stock  market  had  a 
severe  relapse,  stocks  breaking  badly.  Keene 
rose  from  bed  and  hurried  to  the  Board  with 
his  partner,  John  W.  Coleman.  The  appearance 
of  things  was  not  of  such  a  nature  as  to  put 
health  into  a  sick  man,  and  they  soon  left  the 
Board  room.  It  is  said  his  stocks  had  shrunk 
one  million  in  value  at  the  time.  But  that  was 
incidental  to  the  business;  in  a  short  time 
stocks  recovered  and  all  were  happy  again. 

Keene  had  very  little  money  when  he  began 
business  as  a  mining  broker,  but  rapidly  be- 
came very  prominent.  He  was  employed  for  a 
time  as  a  street  broker,  receiving  many  orders 
from  Burling  &  Co.,  then  a  great  firm. 

In  1869  Charles  N.  Felton  loaned  him  the 
seat  to  which  he  was  elected,  his  partner  being 
George  I.  Ives,  a  relative  of  Felton.  In  1870 
Keene  bought  a  seat  on  which  Ives  was  elected, 
thus  settling  the  loan.  Probably  no  active 
broker  has  ever  shown  so  great  a  genius  in 
speculation  as  Mr.  Keene.  In  all  the  big  deals  Anecdotes 
he  was  quite  prominent.  Yellow  Jacket,  Cen- 


History  of  the  Sanfrancisco 


Anecdotes 


tral  No.  2,  Consolidated  Virginia,  California 
and  Ophir  all  helped  to  swell  his  bank  account. 
He  was  a  large  holder  in  the  new  Bank  of 
California  stock.  In  addition  to  Coleman,  he 
was  at  one  time  connected  with  Henry  Wil- 
liams and  afterwards  with  E.  F.  Hall. 

He  left  for  New  York  in  1876  and  for  30 
years  has  been  one  of  the  prominent  figures 
in  the  New  York  stock  market.  He  was  re- 
puted to  be  worth  $5,000,000  when  he  left  Cali- 
fornia. 

To  show  how  quickly  Keene  could  detect  an 
order,  let  me  relate  an  incident.  Mr.  Flood,  at 
times,  found  it  to  his  advantage  to  employ 
other  than  his  regular  well-known  brokers. 
Mr.  B.  F.  Sherwood  was  known  to  be  Sharon's 
confidential  broker.  Mr.  Flood  met  me  on 
California  street  and  asked  me  to  tell  Sher- 
wood to  meet  him  at  a  designated  place.  In 
the  Board  that  afternoon,  Sherwood  began 
executing  an  order  on  one  of  Flood's  well- 
known  stocks.  Keene  was  on  his  feet  instantly, 
buying  the  stock,  when  Sherwood  stopped  buy- 
ing and  sat  down.  Keene  commenced  writing 
down  his  purchases  with  the  remark:  "Hello, 
what's  up,  a  nigger  in  the  fence?"  After  the 
Board  Sherwood  related  the  incident  to  me, 
speaking  in  high  praise  of  the  power  of  dis- 
cernment that  Keene  always  displayed  in  times 
of  emergency. 

[126] 


Stock  and  Exchange  Board 


2 

Horace  L.  Hill  joined  the  Board  in  1867, 
purchasing  the  seat  of  Harry  C.  Logan,  and 
was  a  member  of  the  firm  of  Hill  &  Kilgour. 
By  strict  adherence  to  business  the  firm  be- 
came quite  wealthy,  and  dissolved  in  1879. 

Mr.  Hill  was  of  a  stout,  round  form,  about 
five  feet  ten  inches  in  height,  full  beard,  a 
happy,  jolly  temperament,  and  quick  in  de- 
cision in  transactions  in  the  Board.  He  owned 
a  dwelling  house  and  lot  on  Bush  street,  up 
about  Mason.  Keene  wanted  to  buy  the  prop- 
erty, and  they  were  getting  closer  and  closer 
to  the  price,  when,  one  morning,  suddenly, 
Keene  wrote  on  the  margin  of  a  newspaper 
the  price  he  would  finally  pay.  Hill  looked  at 
it,  said  "sold,"  and  the  transaction  was  closed. 


3 

Col.  E.  E.  Eyre  and  John  W.  Coleman  were 
intimate  companions.  Eyre  was  a  Southerner, 
and  when  called  upon  could  show  the  proper 
kind  of  spirit  a  gentleman  should  always 
possess.  He  had  lived  in  Sacramento  in  early 
years,  and  in  1864-1867  was  a  mining  broker 
in  Virginia  City,  Nevada,  joining  the  San 
Francisco  Stock  and  Exchange  Board  in  the 
latter  year,  and  residing  in  San  Francisco. 
In  the  great  Bonanza  deal  he  was  the  broker-  Anecdotes 
in-chief  to  the  firm  of  Flood  &  O'Brien, 


History  of  the  Sanfhmdsco 


Anecdotes 


handling  their  many  transactions  with  fine 
business  acumen.  From  the  sum  total  of  his 
operations  he  amassed  a  large  fortune  and  re- 
tired about  1880. 

Coleman  was  a  Kentuckian.  He  had  a  full 
beard  extending  down  his  ci:est,  was  of  a 
genial  disposition  and  backed  by  a  host  of 
friends.  He  had  been  connected  with  the 
Western  Union  Telegraph  Company  and 
served  as  president  of  the  Board  for  two 
years,  our  fine  Pine  street  building  being 
erected  during  his  administration.  He  had 
been  a  partner  and  joint  operator  with  Keene, 
thus  amassing  a  large  fortune  early. 

Eyre  always  drank  whiskey,  while  Coleman's 
favorite  was  brandy.  Nothing  could  induce 
either  to  change  his  beverage.  One  day,  with 
several  younger  brokers,  they  went  to  the 
Pantheon.  On  the  way  Coleman  and  Eyre 
were  discussing  a  matter  upon  which  they  dif- 
fered, and  the  discussion  becoming  heated,  con- 
tinued even  when  their  refreshments  were  fur- 
nished. Some  of  the  wags,  noticing  the 
abstraction  of  the  pair,  deliberately  changed 
their  glasses  and  called  to  them  to  "take  their 
medicine."  They  swallowed  the  contents  of 
the  glasses,  continued  the  discussion  up  the 
street  and  never  knew  of  the  little  joke. 

MORAL — All  alcohol  has,  more  or  less,  the 
same  taste. 

[128] 


awaax 


acur 

is  he  amassed  a  large  fortune  and  re 

ut  1880. 

an  was  a  Kentuckian.    He  1 

down  - 1,   was   of 


friends.    He 
\x/v 


s  drank  whisKey,  wniic  v/oic, 
ite  was   brandy.    Nothing  could  indue 
either  to  change  his  beverage.  One  day,  wit! 
younger  brokers,  they  went   to   th 
On  the  way  Coleman  anc 

they  dil 


and  never  knev  e  joke. 

MORAL — All  alcohol  has,  more  or  I 


JAMES    R.  KEENE 


Stock  and  Exchange  Board 


4 

Every  one  on  the  Pacific  Coast  has  heard 
of  Fulton  G.  Berry,  a  man  with  so  happy  a  dis- 
position that  fun  and  frolic  continually  crop 
out  in  his  company.  At  this  time  a  six-footer, 
with  yellowish  hair  and  full  beard,  Berry  could 
assume  the  gravest  face  in  the  midst  of  a  side- 
breaking  joke. 

Baron  F.  E.  Wilke  was  not  far  behind  Berry 
in  a  merry  disposition.  A  German,  with  a 
round,  laughing  face,  spectacles  and  an  enor- 
mous mustache,  he  could  give  and  take  in 
jokes  with  any  one. 

These  gentlemen  assisted  in  making  life  very 
agreeable  in  the  Board  during  dull  seasons. 

Mark  L.  McDonald  was  six  feet  four  inches 
high,  towering  over  all  in  the  turmoil  of  the 
ring.  A  Kentuckian,  with  sandy  hair  and  a 
full  beard,  with  blue  eyes,  he  was  a  handsome 
man  and  a  power  in  the  Board. 

Our  seats  in  those  days,  1876,  had  been 
changed  to  chairs,  with  a  box  under  the  seat 
for  one's  hat.  Fult.  Berry  never  used  his  hat 
box,  so  Mark  L.  McDonald  would  place  his  hat 
there  for  safe  keeping.  McDonald  had  been 
presented  with  a  $16  silk  hat  by  an  enthusiastic 
client,  and,  unfortunately,  brought  it  to  the 
Board  and  placed  it  as  usual  in  Fult.  Berry's 
box  for  safe  keeping,  after  the  members  had  Anecdotes 
sufficiently  admired  it.  Wilke  and  Berry  joked 
[  129] 


History  of  the,  Sanfrancisco 


about  it  and  arranged  that  an  old  silk  hat 
should  be  placed  on  Berry's  seat,  that  Berry 
should  return,  abstractedly  sit  down,  crush  it, 
and  members  should  call  McDonald's  attention 
to  it,  intimating  that  it  was  the  brand  new  $16 
hat.  Somehow  or  other,  while  Wilke  and 
Berry  were  away,  the  hats  were  changed,  the 
old  one  placed  under  the  chair  and  the  new 
$16  hat  on  the  seat.  In  the  midst  of  these 
arrangements,  back  came  Berry,  sat  down,  and 
on  rising,  lo  and  behold,  there  was  McDonald's 
$16  hat  crushed  out  of  recognition.  It  looked 
like  a  scrap  for  a  minute,  but  the  apologies  of 
Berry  and  Wilke  were  so  sincere  and  genuine 
that  McDonald  could  not  but  accept  them,  and, 
finally,  himself  sat  down  on  Wilke's  silk  hat, 
and  the  incident  closed. 


Anecdotes 


Jack  McKenty  could  joke  and  laugh  and 
have  a  good  time,  especially  with  such  fun 
makers  as  Berry  and  Wilke. 

McKenty  was  small  in  stature,  hair  all  over 
his  face,  thick  in  spots;  loved  a  good  dinner, 
with  a  bottle  of  wine,  better  than  the  rest  of 
us,  and  was  a  constant  frequenter  of  Martin's 
celebrated  restaurant  on  Commercial  street. 

He  had  a  quick,  short  speech,  clipping  words 
in  his  haste  to  express  himself.  He  would 
always  make  a  bet  or  sell  a  privilege.  While 
[130] 


Stock  and  Exchange  Board 


in  Virginia  he  was  endeavoring  to  buy  the 
dividends  on  a  certain  stock  from  the  dignified 
agent  of  Wells,  Fargo  &  Co.,  Mr.  James  H. 
Latham.  The  last  named  would  not  sell  the 
dividends,  nor  buy  a  privilege,  nor  make  any 
transaction  that  was  not  legitimate.  After  re- 
peatedly failing  to  get  a  trade  from  Latham, 
McKenty  noticed  three  pigeons  in  a  line  on  C 
street,  in  front  of  the  bank,  and  offered  to  bet 
Latham  that  the  nearest  pigeon  would  fly  first. 
"I  never  bet  on  pigeons,"  was  the  answer  of 
the  dignified  manager.  "Well,  I  will  bet  you 
the  last  one  flies  first."  "I  never  bet  on 
pigeons,  Mr.  McKenty." 

"I  will  bet  you  the  middle  one  flies  first." 
"I  never  bet  on  pigeons,  Mr.  McKenty." 
"Why,    what    is    the    matter    with    you, 
Latham,"  said  McKenty,  "you  won't  trade  at 
all.  I  will  bet  you  they  don't  fly  at  all." 

6 

Sam  Franks  tells  this  story:  While  stocks 
were  quite  low  during  a  dull  spell  in  1873,  a 
discovery  of  ore  was  made  in  Ophir,  the  stock 
advancing  in  price.  It  was  the  policy  of  those 
in  control  of  a  Comstock  mine  to  keep  secret 
any  improvement  until  they  could  secure  for 
themselves  a  good  quantity  of  the  stock. 

Budd  heard   of  this    Ophir   discovery   and     Anecdotes 
bought  some  stock,  and,  as  the  price  advanced 


History  of  the  SanFranctsco 


Anecdotes 


more 

purchased  in  all  2500 

shares.  As  the  stock  still  advanced  to  higher 
figures  he  sold  about  1500  shares,  leaving  him 
a  balance  of  1000  shares  when  the  stock 
reached  $82,  which  would  have  given  him 
quite  a  large  profit  if  all  were  sold  at  that  fig- 
ure. 

During  the  recess  that  day  he  determined  to 
sell  the  remainder,  which  would  give  him  quite 
a  profit.  The  afternoon  session  was  devoted  to 
the  calling  of  outside  stocks,  occupying  half  an 
hour,  after  which  the  members  could  call  up, 
through  the  chairman,  any  of  the  Comstock 
shares.  Budd,  thinking  he  had  time  sufficient, 
during  that  first  half  hour,  to  get  shaved,  sat 
down  in  a  barber's  chair,  and,  being  quite 
flush,  gave  the  barber  $5,  directing  him  to  give 
him  a  good  shave.  It  turned  out  to  be  too  good 
a  shave,  as  Budd  went  to  sleep,  and  the  bar- 
ber, being  well  paid,  devoted  quite  a  time  in 
making  his  customer  appear  respectable.  Budd 
woke  up,  looked  at  his  watch  and  made  a  rush 
for  the  Board.  He  ascertained  that  Ophir  had 
been  called  and  had  broken  so  badly  that  when 
his  stock  was  sold  he  only  obtained  $40  a  share 
for  it. 

He  always  claimed  that  that  shave  cost  him 
just  $40,000. 


Stock  and  Exchange  Board 


7 

Sometimes  it  pays  to  go  to  sleep. 

Louis  Eppinger  kept  a  bar  on  Halleck  street, 
just  below  Leidesdorff.  He  was  very  popular, 
and  a  genial,  jolly  barkeeper,  holding  your  at- 
tention while  preparing  a  mixed  drink.  In  his 
white  coat,  with  his  bullet-shaped  head,  with 
little  hair  on  the  top,  and  a  black  mustache, 
always  laughing  and  telling  a  joke,  he  appeared 
to  be  just  the  man  to  succeed  in  keeping  a  bar. 
Unfortunately,  he  spent  all  of  his  profits  gam- 
bling in  stocks,  generally  on  the  wrong  side. 

He  gave  an  order  to  buy  1000  Ophir,  the 
stock  selling  at  about  $54.  The  stock  was  bid 
up  to  $56,  when  W.  H.  Wright,  one  of  the 
shrewdest  of  operators,  sold  400  shares,  and 
then  imparted  the  intelligence  to  a  young 
broker,  who  sold  the  other  600  shares.  The 
next  morning  came  the  news  of  a  big  fire  in 
Virginia  City,  all  stocks  breaking  in  price, 
Ophir  among  the  rest.  Wright  is  a  safe  opera- 
tor and  bought  back  the  400  Ophir  too  quickly, 
as  it  kept  on  declining.  The  young  broker  had 
sold  short  the  600  shares  mentioned,  and  had 
indulged  in  what  is  technically  termed  a  bat, 
not  arriving  at  the  Board  until  about  one 
o'clock  in  the  afternoon,  at  which  time  Ophir 
was  selling  at  $37.  He  purchased  the  600 
shares  at  the  lowest  price,  realizing  nearly  Anecdotes 
$12,000  on  the  transaction. 

[133] 


History  of  the  SanRvncisco 


Anecdotes 


8 

Will  some  old  Californian  kindly  brush  up 
his  memory  and  inform  us  of  the  name  of  this 
person  and  of  the  name  of  the  stock  he  pur- 
chased? 

It  was  well  known  among  us,  in  the  great 
market,  that  a  San  Franciscan  bought  some 
stock,  locked  it  in  his  box,  and  said  to  a  friend : 
"I  leave  for  China  on  the  steamer  today. 
Should  there  be  a  profit  in  that  stock  I  pur- 
chased, sell  it  for  me." 

The  gentleman  left  for  China,  and  the  stock 
advanced.  In  trying  to  sell  the  stock  the 
friend  ascertained  that  the  traveler  had  the 
key  to  his  box,  so  that  the  stock  could  not  be 
obtained.  Telegrams  did  not  reach  the  traveler, 
who  eventually  returned  and  inquired  about 
the  sale,  if  any.  He  was  told  that  his  stock  was 
still  hidden  away  and  selling  at  a  higher  price 
than  ever.  The  sales  were  made,  and  the 
profits  amounted  up  into  the  hundreds  of  thou- 
sands of  dollars. 

9 

Mr.  B.  F.  Sherwood  had  been  connected  with 
the  house  of  Stout  &  Dickinson,  bankers  and 
brokers,  in  New  York  City  before  arriving  in 
California. 

He  was  of  a  quiet  disposition,  affable  and 
courteous  in  conversation,  of  medium  stature, 
compact  frame,  iron  gray  hair  and  mustache. 
[134] 


Stock  and  Exchange  Board 


He  opened  an  office  as  a  broker  in  Virginia 
City  in  1867,  remaining  but  a  year,  and  returned 
to  San  Francisco,  again  entering  the  Board. 
As  a  broker  he  early  obtained  the  friendship 
and  confidence  of  a  number  of  the  large  opera- 
tors, and  in  Virginia  City  and  San  Francisco 
had  executed  large  orders  for  Mr.  William 
Sharon. 

He  was  much  interested  in  the  Young  Men's 
Christian  Association,  being  at  one  time  its 
treasurer,  two  or  three  of  us  becoming  life 
members  at  his  solicitation. 

Being  known  as  Sharon's  broker  it  was  at 
times  difficult  for  him  to  execute  the  large 
orders  given  by  that  gentleman,  and  for  this 
reason  he  would  employ  his  brother  brokers. 

Whenever  the  market  became  dull,  so  that 
neither  operators  nor  speculating  brokers  were 
active,  Mr.  Sharon  would  give  Mr.  Sherwood 
a  large  selling  order  that  would  be  termed  a 
"settler."  Occasionally,  such  an  order  would 
be  to  sell  2000  shares  of  six  or  seven  of  the 
principal  stocks,  the  result  being  to  break  the 
prices  of  everything  on  the  list,  and  thus  in- 
duce all  speculators  to  buy  at  what  would  be 
deemed  low  prices.  A  break  in  prices  from  $3 
to  $10  a  share  in  Ophir,  Chollar,  Belcher, 
Crown  Point,  Yellow  Jacket,  Savage  or  Over- 
man would  turn  the  whole  street  into  buyers,  Anecdotes 
in  which  case  prices  would  rise  again,  when 
[135] 


History  of  the  SanFraneisco 


all  the  stock  purchased  could  be   sold  at  a 
profit. 

On  one  occasion,  after  I  had  joined  Sher- 
wood as  a  partner  in  1875,  we  received  a  large 
order  to  buy  Yellow  Jacket.  The  closing  price 
at  the  previous  session  had  been  $112  a  share. 
We  felt  quite  sure  that  the  stock  would  sell  as 
high  as  $120  on  the  call,  but  how  were  we  to 
fill  our  large  buying  order  without  advancing 
the  price  above  that  figure.  Sherwood  sug- 
gested that  I  should  buy  quickly  all  the  stock 
obtainable  up  to  $116,  rush  it  to  $120,  and 
then  subside  into  my  seat.  This  was  done,  and 
more  stock  being  offered  at  $120  with  no 
buyers,  the  price  rapidly  declined  to  $117,  when 
Sherwood,  in  his  quiet  way,  bought  all  the 
stock  offered  and  bid  it  back  again  to  $120. 
After  the  call  we  congratulated  each  other  on 
filling  our  large  buying  order  with  a  rise  in  the 
price  of  only  $8  a  share. 


Anecdotes 


IO 

In  the  early  days  of  San  Francisco  the  ma- 
jority of  its  citizens  were  of  a  speculative  dis- 
position. They  would  take  any  stocks  then  in 
existence,  would  purchase  merchandise  that 
sold  at  ruinous  prices  at  public  auction,  or 
would  buy  50  vara  lots,  and  sell  them  at  an 
advance.  My  friend  George  Wright  was  of 
this  class,  speculating  in  this  manner  to  his 


Stock  andExdtangeBoard 


advantage.  He  was  associated  with  his  father 
in  a  steamboat  line  between  San  Francisco  and 
Portland.  George  generally  had  several  hun- 
dred shares  of  the  Comstock  mines  in  his  bank 
box.  As  we  knew  him  later  on  in  the  Bohemian 
Club,  he  was  of  medium  height,  with  grayish 
brown  hair  and  mustache,  high  forehead,  and 
a  constant  smoker. 

One  morning,  in  the  early  fifties,  on  entering 
the  business  portion  of  the  city,  he  met  a  friend, 
and  together  they  entered  an  auctioneer's  of- 
fice, where  an  extensive  sale  was  taking  place. 
While  conversing  with  his  friend,  he  caught  the 
eye  of  the  auctioneer,  and  bowing  pleasantly 
to  him,  continued  his  conversation.  The  next 
day  the  collector  of  the  establishment  called 
and  presented  a  bill  for  $2500. 

To  his  astonishment  he  ascertained  that  in 
bowing  to  the  auctioneer  the  previous  day,  his 
greeting  was  taken  as  a  bid  for  merchandise 
then  being  sold,  and  the  goods  knocked  down 
to  him.  His  bill  showed  that  he  had  purchased 
a  cargo  of  tacks  at  an  exceedingly  low  price, 
something  like  a  cent  a  paper.  As  every  gen- 
tleman was  expected  to  keep  his  word  in  those 
days,  George  made  no  fuss  about  the  purchase, 
gave  his  check  for  the  amount,  and  sat  down 
to  ponder  over  the  purchase. 

He  soon  arrived  at  a  decision  and  rented  a     Anecdotes 
small  vacant  house.    It  possessed  one  room, 


History  of  the  Sanfrcrndsco 


Anecdotes 


with  shelves  around  the  walls,  placed  there  for 
the  disposition  of  goods  to  be  sold.  Draymen 
began  delivering  the  tacks,  and  Wright's  as- 
sistants commenced  placing  them  in  position 
on  the  shelves.  Wanting  more  room,  addi- 
tional rows  of  shelves  were  erected  in  the  cen- 
ter of  the  establishment,  which  were  soon  filled, 
and  when  the  final  load  of  tacks  arrived  there 
was  no  place  for  them.  Luckily,  the  help  found 
a  trap  door,  which,  when  opened,  exposed  a 
capacious  cellar,  where  the  last  of  the  tacks 
were  stored. 

Unfortunately  for  George  he  became  ill  at 
this  juncture  with  the  prevailing  disease  of 
fever  and  ague,  a  sickness  which  makes  one 
regardless  of  whether  school  keeps  or  not. 
Wright  was  compelled  to  discharge  his  clerks, 
lock  and  bolt  the  doors  and  windows,  and  seek 
a  healthy  retreat  in  the  mountains.  Being 
young,  vigorous  and  of  a  good  constitution,  by 
careful  nursing,  in  a  few  weeks  his  health  was 
so  far  restored  that  he  ventured  back  to  the 
city  to  see  about  those  tacks. 

On  arriving,  he  learned  that  a  great  fire  had 
occurred,  destroying  a  large  portion  of  the 
city.  The  citizens  were  building  frame  houses, 
and  in  their  haste  were  adorning  their  walls 
with  cloth  and  paper  instead  of  plaster,  and 
the  supply  of  tacks  was  exhausted. 

Fortunately,  his  store  was  one  of  the  few 


Stock  andExchangeBoard 


saved  from  the  fire.  His  former  clerks  came 
to  his  assistance,  the  store  was  reopened, 
posters  told  the  citizens  where  tacks  could  be 
found,  and  there  was  a  consequent  rush  for 
George  Wright's  store.  The  high  price  de- 
manded for  a  paper  of  tacks  was  readily  paid 
during  the  first  few  days,  and,  as  the  supply 
decreased,  the  price  was  advanced. 

In  narrating  this  story  in  the  old  Bohemian 
Club  rooms  on  Pine  street,  Col.  John  Cremony 
would  state  the  price  of  tacks  at  $i,  then  $1.50, 
then  $2  a  paper,  George  standing  by  and  nod- 
ding acquiescence ;  but  when  the  Colonel  would 
get  tacks  up  to  $4  a  paper,  our  friend  George 
would  walk  into  the  other  room  and  begin  a 
conversation  with  old  Parker,  the  steward.  We 
could  not  ascertain  whether  this  was  a  diplo- 
matic evasion  or  not,  but  we  all  enjoyed  the 
story. 

I  would  like  to  narrate  the  other  old 
Bohemian  Club  stories  of  the  Reform  Whiskey, 
Charley  Scudder's  Dinner,  and  the  Great  Wake, 
but  must  desist,  as  this  is  a  chapter  on  stocks. 

Should  you  like  to  hear  them,  ask  Nat 
Brittan. 


II 

A  "Sending  Blank"  is  the  technical   term 
used  by  the  Western  Union  Telegraph  Com-     Anecdotes 
pany  for  those  blanks  upon  which  we  write  a 
[  139  ] 


History  of  the  Sanfrancisco 


Anecdotes 


I" 

telegram.  A  "Receiving  Blank"  is  the  term  the 
same  company  uses  for  those  blanks  upon 
which  they  write  the  words  of  a  telegram 
addressed  to  us  from  some  distant  point.  All  of 
us  retain  a  number  of  the  sending  blanks  in 
our  office,  ready  for  instant  use. 

Certainly,  the  telegraph  company  should 
take  especial  care  that  those  receiving  blanks, 
with  the  envelope  in  which  the  telegram  is 
enclosed,  should  never  be  in  the  possession  of 
any  one  outside  of  their  office. 

A  week  after  the  departure  of  my  partner, 
Mr.  Sherwood,  for  New  York,  in  1875,  the 
junior  partner,  Mr.  Wade,  came  to  me  with  a 
troubled  look.  He  had  just  read  in  the  morning 
paper  that  Pete  Hopkins  of  the  Grand  Hotel 
had  been  the  victim  of  a  confidence  operator, 
and  that,  possibly,  our  firm  had  been  victimized 
also. 

It  happened  that  the  previous  morning 
those  clerks  arriving  the  earliest  at  the  office 
had  found  a  telegram  pushed  under  our  front 
door.  This  fact  alone  should  have  excited 
suspicion,  but  in  the  hurry  of  business  was 
forgotten.  The  despatch  purported  to  be  from 
Mr.  Sherwood,  on  his  arrival  in  New  York, 
stating  that  he  had  bought  a  piano  of  Matthias 
Gray  for  about  $600,  had  forgotten  to  pay  for 
it,  and  directing  the  office  to  attend  to  it. 

Wade  said  that  a  man,  ostensibly  a  collector 


Stock  and  Exchange  Board 


for  Matthias  Gray,  on  the  day  the  telegram 
arrived,  presented  a  bill  for  $580  for  a  piano, 
written  on  the  regular  bill  head  account  paper 
of  Matthias  Gray,  and  that  he  had  given  him  a 
check  for  the  same,  payable  to  Mr.  Gray.  He 
was  now  convinced  that  the  whole  thing  was 
a  swindle  and  that  Sherwood  never  bought  the 
piano.  We  sent  one  clerk  to  the  bank  for  the 
check,  and  another  to  the  police  department, 
requesting  Captain  Lees  to  kindly  call  at  the 
office  on  a  matter  of  importance. 

When  Captain  Lees  arrived  and  heard  the 
story,  his  only  observation  was:  "Go  into  the 
bank  and  tell  Brown."  When  Mr.  Thomas 
Brown,  cashier  of  the  bank,  heard  of  our  trou- 
ble, his  remark  was :  "Go  and  see  Sharon." 

While  being  hustled  around  in  this  manner, 
from  one  to  another,  our  $580  looked  farther 
off  than  ever.  But  I  knew  something  definite 
would  be  learned  from  Senator  Sharon.  That 
gentleman  listened  patiently  to  the  story  with 
a  smile  around  his  lips,  and  when  all  was  told 
remarked:  "And  so  they  got  you,  too,  did 
they?"  He  showed  me  a  telegram  purporting 
to  have  been  sent  by  Senator  Jones,  asking  him 
to  pay  a  bill  at  Colonel  Andrews,  the  jeweler, 
for  $600  for  diamonds  purchased. 

The  senator  also  stated  that  Keene  had  been 
caught  for  $600,  and  he  thought  we  were  all  in     Anecdotes 
for  it. 

[141] 


"L\ 


c 


History  of  the,  Sanfrandsco 


How  many  more  were  caught  I  never  heard, 
but  I  have  always  felt  an  interest  in  that  $600 
chap,  who  caught  us  all  in  this  bold  way,  and 
got  away  with  the  goods. 

Years  afterwards  Captain  Lees  told  me  he 
knew  the  man  was  in  Idaho  and  that  he  could 
lay  his  hands  on  him  at  any  time,  but  that  it 
would  cost  more  than  $600  to  have  him  brought 
here,  and  so  the  matter  was  dropped.  Should 
this  ever  meet  the  eye  of  that  $600  man,  I  only 
hope  he  has  turned  over  a  new  leaf  in  life  and 
tried  to  become  an  honorable  man,  in  which 
case  he  is  welcome  to  my  $600. 


Anecdotes 


12 

In  an  active  market,  when  prices  are  soar- 
ing, orders  continually  coming  in,  and  members 
are  buying  before  the  call  of  stocks,  during  the 
call,  and  for  hours  after  the  regular  session  is 
over,  brokers  are  generally  keyed  up  to  a  high, 
exciting  pitch.  When  a  dull  spell  arrives,  ex- 
citement finds  vent  in  all  manner  of  fun. 

I  had  purchased  a  small  farm  in  Sonoma 
Valley  in  1877,  and  one  day  injudiciously  re- 
marked that  rabbits  should  be  a  profitable  in- 
vestment on  a  farm.  From  this  arose  all  man- 
ner of  stories  about  the  farm  being  stocked 
with  rabbits,  my  brother  brokers  inventing 
many  ingenious  remarks  concerning  the  rais- 
ing of  rabbits,  and  even  one  of  the  newspapers, 


Stock  and  Exchange  Board 


the  Stock  Exchange,  published  four  columns 
about  the  enterprise,  stating  that  Col.  Mark  L. 
McDonald  was  becoming  interested  and  would 
stock  his  Santa  Rosa  farm  with  an  improved 
breed.  It  is  needless  to  mention  that  I  never 
had  a  rabbit  on  my  farm,  but  they  fixed  it  up 
one  day  in  the  Board  for  my  benefit,  all  right, 
all  right. 

Our  chairs  contained  a  hat  box  below  the 
seat,  sufficiently  large  to  hold  a  high  silk  hat. 
Arriving  in  the  Board  one  morning,  just  before 
the  call,  I  sat  down  and  hastily  pulled  out  the 
hat  box  in  order  to  place  my  hat  safely  away, 
when  out  jumped  the  largest  jack  rabbit  ever 
seen  in  the  city.  The  few  in  the  secret  had 
been  patiently  waiting  for  the  incident,  and 
the  minute  that  rabbit  struck  the  floor,  the 
shout  that  went  up  could  have  been  heard  a 
block  off,  and  so  scared  that  jack  rabbit  that 
he  darted  through  an  open  space  for  the  ros- 
trum, the  entire  crowd  of  brokers  rushing  after 
him. 

The  fugitive  ran  this  way  and  then  that 
way,  and  then  laying  his  long  ears  horizontally 
down  his  back,  made  several  of  those  long  12- 
foot  jumps  that  only  a  scared  rabbit  can  make, 
finally  landing  under  the  chairs  on  the  side  of 
the  room.  The  whole  crowd  ran  pell-mell  after 
him,  losing  their  hats,  pencils,  order  books,  and  Anecdotes 
one  fine  old  gentleman  lost  his  wig,  but  Mr. 
[143] 


History  of  the  Sanfrcmclsco 


Anecdotes 


'Bunny  was  off  again,  running  through  the 
crowd.  They  tripped  and  fell  on  the  floor,  up 
and  off  again,  yelling  like  mad  people,  crying 
out:  "Catch  the  rabbit."  The  lobby  joined  in 
the  yelling,  crowded  around  the  rail  and  urged 
the  brokers  on. 

When  the  crowd  in  chase  would  arrive  at 
one  side  of  the  room,  two  jumps  would  place 
bunny  in  safety  on  the  other  side.  Sitting  up 
and  aggravatingly  lifting  his  ears,  turning  his 
head  just  a  trifle  on  one  side,  he  was  calmly 
indifferent  to  the  approaching,  rushing  mob. 
With  outstretched  hands,  brokers  were  sure 
now  they  had  him,  when  one  side  jump  would 
place  jack  again  in  safety. 

To  witness  the  members  of  the  great  San 
Francisco  Stock  Exchange,  at  that  time  the 
wealthiest  and  most  dignified  body  of  men  on 
the  Pacific  Coast,  racing  around  a  yo-foot  room 
trying  to  catch  a  runaway  jack  rabbit — well, 
had  you  been  there,  your  sides  would  have 
ached  with  laughter. 

Poor  bunny  was  finally  hedged  in  a  corner 
and  caught.  Brokers  are  humane  beings  after 
all,  and  when  bunny  finally  gave  up  the  ghost 
some  time  after,  it  was  not  at  the  hands  of  the 
brokers. 

13 

Among  the  active  members  in  1876  was  a 
young  Englishman,   Thomas  T.   Atkinson,   a 
[144] 


Stock  and  Exchange  Board 


man  of  medium  stature,  with  light  hair  and 
mustache,  florid  complexion  and  blue  eyes, 
rather  stout,  and  of  a  very  pleasant  disposi- 
tion. When  Mr.  Atkinson  entered  the  Board 
room,  fresh  from  the  barber's  chair,  he  became 
the  center  of  attraction.  On  one  occasion,  after 
a  recent  visit  to  the  barber's,  he  appeared 
among  us  handsomely  decorated,  with  his  fine 
mustache  waxed  at  the  ends  and  protruding 
some  distance  from  either  cheek.  Mr.  A.  F. 
Coffin  became  quite  jealous  of  the  handsome 
broker,  and  borrowing  a  pair  of  scissors  from 
Sammy  Dixon,  attempted  to  clip  off  one  of  the 
ends  of  Atkinson's  mustache.  Unfortunately, 
his  victim  advanced  his  head  unknowingly 
towards  the  scissors,  and  the  clip  took  off  the 
entire  end  of  the  mustache,  without  the  pos- 
sessor being  aware  of  the  loss.  The  smiles  of 
his  brother  members  caused  him  to  feel,  to  see 
if  everything  was  all  right,  and,  on  ascertaining 
his  loss,  the  air  became  blue  with  exclamations 
of  rage  and  otherwise. 

Our  friend  Atkinson  again  became  a  victim 
of  the  fun-loving  brokers.  A  large  $250  rug 
was  purchased  and  placed  on  the  floor,  ostensi- 
bly to  improve  the  acoustics  of  the  room.  Busi- 
ness was  dull  and  the  members  stationed  them- 
selves around  the  four  sides  of  the  rug  with 
malicious  intent.  At  this  juncture  Mr.  Atkin-  Anecdotes 
son  appeared  in  the  room,  looking  handsomer 

EMS] 


History  of  the  Sanfrandsco 


than  ever,  and  innocently  approached  the 
crowd  to  ascertain  what  was  going  on.  In  an 
instant  he  lost  his  hat  which  was  shied  to  the 
middle  of  the  rug.  He  jumped  in  to  recover  his 
hat,  which  action  was  all  that  was  needed.  The 
ready  hands  of  his  brother  members  lifted  the 
rug  from  the  floor;  the  victim  lost  his  balance 
and  fell  at  full  length  on  the  rug.  He  was  tossed 
up  and  down,  carried  to  the  rostrum  and 
around  the  room,  vainly  endeavoring  to  extri- 
cate himself,  until  finally  he  was  carried  to  the 
middle  of  the  room,  the  four  sides  and  ends  of 
the  rug  heaped  upon  him,  and  he  was  hidden 
from  view.  After  the  lapse  of  a  few  moments 
his  frantic  struggles  released  him,  and  on  look- 
ing around  to  pounce  upon  some  one  culprit,  he 
found  all  the  brokers  sitting  in  their  chairs, 
each  earnestly  discussing  some  important  mat- 
ter with  his  neighbor. 


Anecdotes 


14 

One  holiday  we  gathered  on  California 
street  in  front  of  the  Board  and  on  the  steps 
leading  to  the  office  of  James  H.  Latham  & 
Co.  Early  in  the  morning  Consolidated  Vir- 
ginia sold  at  $600  a  share ;  it  became  stronger, 
sold  higher,  $610,  $620,  $650,  and  as  we  left 
the  street  in  the  afternoon  it  was  selling  at 
$700  a  share — a  rise  of  $100  a  share  made  on 
the  street  without  a  Board  to  help  us. 


Stock  and Exchange Board 


One  of  our  brokers,  a  winner  in  the  deal, 
was  seen  escorting  two  ladies  up  Market  street, 
but  declined  to  notice  a  brother  broker,  who 
soon  ascertained  that  the  trio  were  about  to 
visit  a  restaurant  where  the  latter  usually  dined. 
He  managed  to  be  placed  in  the  next  box  to 
them.  The  gallant  broker  lisped  a  trifle  in  con- 
versation, and,  addressing  his  ladies,  was  heard 
to  say:  "Well,  what  will  you  take?  I  thall 
order  a  glath  of  pie  and  a  pieth  of  milk."  The 
suggested  meal  was  too  economical  for  his 
guests,  who  ordered  oysters,  etc.  The  story 
was  all  over  the  Board  the  next  day. 

15 

E.  J.  de  Santa  Marina  came  from  New  Or- 
leans. His  complexion  was  quite  dark,  and  he 
had  black  curly  hair.  He  was  honest  and 
straightforward  in  his  business  transactions. 
He  entered  the  firm  of  Glazier  &  Co.  on  the 
departure  of  William  Seligsberg.  Marina  ac- 
quired a  fortune  of  about  $750,000,  it  was 
thought,  and  retired  in  1876. 

Marina  could  do  the  right  thing  when  called 
upon.  He  was  out  of  order  one  day  and  was 
fined  $2.50.  Resenting  this  action  of  Mr.  Coit, 
the  chairman,  he  continued  to  offend  and  was 
fined  $10,  $20,  $50,  when  he  stopped.  As  the 
Board  closed  he  asked  for  the  floor,  and  in  a 
beautiful  little  speech,  admirably  worded,  ex- 
[147] 


Anecdotes 


History  of  the  Sanfraneisco 


Anecdotes 


pressed  his  regrets  for  his  conduct,  was  ap- 
plauded by  the  Board,  and  the  fines  were  re- 
mitted. 

16 

Mr.  A.  H.  Lissak,  a  dignified  member,  a 
well-read  man,  an  excellent  reasoner,  the 
ablest  member  of  the  Board,  was  standing  talk- 
ing to  other  members  during  a  call  of  stocks. 
Budd  had  obtained  from  the  California  Street 
Market  the  largest  frog  ever  seen  here — a  prize 
frog.  The  coat  tails  of  Lissak's  frock  coat  were 
gently  raised,  his  handkerchief  abstracted  and 
the  prize  frog  gently  deposited  in  its  place. 
One  of  the  members  asked  Lissak  for  his  hand- 
kerchief. Lissak  put  his  hand  in  his  pocket, 
felt  the  cold,  clammy  frog,  quickly  threw  off 
his  coat  and  sat  down.  Horrible,  was  it  not? 
The  frog  was  regained,  the  coat  restored  and 
peace  came  again. 

Mr.  Lissak  was  an  able  reasoner,  could  al- 
ways express  himself  well  when  called  upon, 
and  was  termed  the  "Father  of  the  Constitu- 
tion." Many  of  the  articles  in  the  old  Consti- 
tution and  By-Laws  were  framed  by  Mr. 
Lissak,  and  he  was  always  called  upon  to  ex- 
plain a  doubtful  meaning  in  any  clause.  He 
was  the  president  of  the  Ophir  Mining  Com- 
pany, when  that  stock  soared  to  high  figures 
in  Bonanza  times. 


Stock  and  Exchange  Board 


17 

M.  D.  Townsend  was  not  a  member,  but  a 
large  operator,  at  one  time  quite  wealthy.  He 
controlled  a  number  of  the  listed  mines.  His 
six-foot  figure  could  always  be  seen  during 
street  transactions,  his  long  arms  swinging  in 
connection  with  each  bid  and  offer. 

Mr.  Townsend  had  500  California  and  500 
Consolidated  Virginia.  He  preferred  to  sell  it 
on  the  street  himself,  a  little  each  day.  He 
took  a  week  to  sell  it  all,  trying  to  obtain  the 
highest  price  for  a  part  of  it.  It  all  sold  above 
$600. 

18 

A  client  called  at  the  office  one  day,  saying 
to  me :  "Let  us  go  to  the  Pantheon  for  a  glass 
of  wine."  On  the  way  there  an  order  was 
given,  which  I  wrote  on  my  left  cuff.  When 
executed  the  order  amounted  to  over  $200,000. 


19 

Coll  Deane  was  an  energetic,  spirited  broker, 
and  a  large  operator  in  addition  to  his  regular 
commission  business.  At  times,  when  excited 
on  the  call  of  a  stock,  his  transactions  would 
make  the  market  price  for  the  day. 

A  trifle  above  the  average  height,  with  large 
head,  and  hair  well  brushed  back,  he  showed 
determination  in  eyes  and  mouth,  while  on  the 
floor  buying  or  selling  a  stock.  While  uncon- 


Anecdotes 


History  of  the  SanErmctsco 


scious  of  the  fact,  he  was  certainly  the  feature 
of  the  Board  for  the  time  being. 

He  was  always  regarded  as  one  of  the  most 
honorable  men  connected  with  the  business. 
When  the  American  stock  broke  from  $20  to 
fifty  cents,  he  called  to  the  office  those  friends 
and  clients  to  whom  he  had  recommended  the 
purchase  of  the  stock,  and  gave  each  of  them 
a  check,  at  the  high  price  they  had  paid,  and 
received  their  stock. 

St.  Helena,  and  recommended  the  purchase  of 
its  shares  to  his  friends.  Unfortunately,  it  did 
not  prove  to  be  a  success.  Again,  he  called  in 
all  to  whom  he  had  recommended  the  stock, 
and  paid  them  the  high  price  it  had  cost  them. 

20 

Judge  Thomas  Sunderland  wanted  $100 ;  the 
banks  were  closed  and  the  judge  was  about  to 
draw  a  check,  when  John  M.  Burtsell  gave  him 

He  placed  on  the  Board  a  stock  called  the 
the  $100  for  the  privilege  of  delivering  to  him 
100  California  at  $600  in  30  days.  The  market 
broke  badly ;  Burtsell  won,  Sunderland  lost. 


Anecdotes 


21 

Jacob  Greenebaum  was  a  brother-in-law  to 
Louis  Sloss  and  Lewis  Gerstle.    He  had  been 
engaged  in  mercantile  business,  but  the  excit- 
ing nature  of  the  stock  business  was  too  attrac- 
[150] 


Stock  and  Exchange  Board 


tive  to  one  of  his  nature,  and  he  became  a  mem- 
ber in  March,  1875,  buying  the  seat  of  Minor 
S.  Martin  for  $30,000. 

In  the  rise  in  values  in  1886,  Greenebaum  & 
Strauss  suspended,  their  losses  arising  princi- 
pally from  a  Virginia  City  firm.  Although  the 
seat  was  worth  but  $5,000,  the  firm  promptly 
and  honorably  met  all  obligations,  amounting 
to  $350,000 — a  splendid  record  for  the  firm  and 
for  the  Board. 


22 

Calaghan  &  Lynch  failed  for  $1,000,000  about 
1877.  Lynch  continued  in  business.  In  1878 
the  Sierra  Nevada  and  Union  deal  occurred. 
Sierra  Nevada  rose  from  $5  to  $280,  and  Union 
went  as  high  as  $200.  Lynch  had  purchased 
some  low  priced  Sierra  Nevada,  and  as  it 
jumped  to  $90,  bought  more.  It  broke  in  one 
day  from  $90  to  $45,  and  again  he  had  lost 
more  than  all.  A  member  kindly  carried  his 
high-priced  stock  over  for  24  hours.  The  stock 
rallied  and  still  went  higher.  Our  friend  was 
saved,  and  eventually  sold  at  such  figures  that 
he  placed  his  profits  in  real  estate,  and  traveled 
to  Europe  and  Egypt,  where  he  could  purchase 
a  "glath  of  pie  and  pieth  of  milk"  cheaper  than 
in  San  Francisco.  He  wrote  a  book  on  Egypt, 
which  was  very  favorably  received  among  emi- 
nent literary  men,  particularly  so  in  England. 


Anecdotes 


History  of  the  SanFrandsco 


Anecdotes 


23 

While  the  secretary  was  reading  the  record 
at  a  morning  session,  one  of  the  pages  brought 
in  an  immense  bouquet  and  presented  it  to 
Robert  F.  Rogers,  one  of  our  handsomest  mem- 
bers. He  instantly  arose  amidst  the  plaudits 
of  the  Board  and  accepted  the  present,  the 
members  vociferating:  "Who  is  she,  who  is 
she?"  As  the  noise  subsided,  the  secretary,  in 
continuing,  called  out  the  name  "Julia"  (one 
of  the  stocks).  It  was  so  apropos  that  the 
shouts  of  hilarity  were  renewed. 

24 

Richard  C.  Hooker,  a  graduate  at  Annapolis, 
resigned  the  position  of  Lieutenant  Com- 
mander in  the  Navy  to  enter  the  Board.  He 
was  one  of  the  extra  twenty  members  elected 
June,  1875,  paying  $25,000  for  a  seat.  He  was 
a  splendidly  educated  man,  and  for  years  we 
held  his  opinion  on  many  national  matters  in 
high  esteem. 

Hooker  failed  in  1886.  On  approaching  his 
office  the  next  morning  a  dissatisfied  client  pre- 
sented a  pistol  at  him,  saying  if  he  did  not 
immediately  pay  him  he  would  kill  him. 
Hooker  instantly  opened  his  coat  and  vest,  and 
baring  his  breast  to  the  irate  individual,  said: 
"That's  the  best  way  out  of  it;  kill  me  if  you 
want  to."  Nothing  done. 
[152] 


Stock  and Exchange Board 


25 

In  the  early  days  in  Virginia  City,  when 
operators  sold  their  stock  they  invariably  in- 
vested the  proceeds  in  San  Francisco  real  es- 
tate. Thus  the  Comstock  Lode  was  the 
greatest  factor  in  upbuilding  San  Francisco. 
It  is  needless  to  mention  the  many  solid  build- 
ings which  adorned  our  city,  all  owned  by 
wealthy  mining  operators.  They  were  also 
large  holders  of  bank  stock,  also  of  Spring 
Valley  Water  and  San  Francisco  Gas. 

26 

It  was  reported  that  Coll  Deane  bought  of 
James  R.  Keene  1000  Consolidated  Virginia  at 
$800,  buyer  ninety,  and  it  was  thought  and  be- 
lieved at  the  time  that  the  stock  would  reach 
$3000  a  share.  Residents  of  Virginia  City 
would  visit  the  Board  and  give  glowing  de- 
scriptions of  the  development,  but  the  great 
price  expected  never  arrived. 


27 

Wayman  C.  Budd  had  lived  in  Sacramento 
and  joined  the  Board  in  1862-1863,  probably 
one  of  the  second  forty  members.  He  was 
about  5  feet  8  inches  high,  with  a  bullet  shaped 
head  on  which  it  was  difficult  to  find  any  hair 
except  around  his  ears;  jolly,  and,  when  not  Anecdotes 
busy,  his  face  was  continually  illuminated  by  a 


History  of  the  SanFhmdsca 


Anecdotes 


smile.  Budd  was  always  speculating,  like  many 
other  members,  sometimes  with  thousands  on 
hand,  at  other  times  "grass  very  short." 

Budd  rarely  smoked.  After  a  session  he  met 
Keene  and  myself  on  the  street.  He  was  smok- 
ing a  cigar  at  least  six  inches  long.  Keene  was 
a  keen  observer ;  nothing  escaped  him.  He  said 
to  Budd:  "You  made  some  money  today;  how 
much  did  you  make?"  Budd's  answer  was: 
"$8,ooo ;  I  had  to  make  it;  I  owed  it."  "But  how 
did  you  do  it?"  On  the  road  to  the  Pantheon, 
and  while  a  quart  bottle  was  being  opened, 
Budd  explained  the  modus  operandi,  what  he 
bought,  how  he  raised  the  stock  by  orders  to 
other  brokers,  and  how  he  sold,  and  then  looked 
at  us  with  that  satisfied  air  that  beams  from 
the  eyes  of  every  man  who,  being  in  debt,  has 
by  his  own  exertions  raised  the  money  to  pay 
his  obligation. 

28 

Budd's  fines  were  severe  at  times,  as  were 
those  of  other  members,  and  when  we  were 
making  money  were  generally  disregarded 
until  the  end  of  the  month,  when  the  bills  came 
in.  Budd  approached  Coit  one  day  with  his  bill 
of  fines  for  the  previous  month,  which 
amounted  to  $1,200.  He  told  the  chairman  he 
could  not  pay  it.  Coit  reduced  it  to  $50,  and 
Budd  behaved  himself  for  a  while. 


Stock  and  Exchange  Board 


29 

In  early  days,  in  the  'yos,  quite  a  number  of 
operators  would  gather  together  in  Cahill's 
office  on  Montgomery  street,  near  California. 
Among  them  were  Mr.  James  C.  Flood  and 
Mr.  Robert  Sherwood.  Sherwood  had  1000 
Consolidated  Virginia,  the  stock  selling  at 
about  $100.  One  day  Sherwood,  on  looking  at 
the  prices,  remarked  that  he  was  getting  tired 
of  that  Consolidated  Virginia;  it  did  not  move 
much.  Mr.  Flood  said :  "What  are  you  growl- 
ing about?  If  you  are  tired  of  that  stock  I 
will  take  it  off  your  hands  at  $100."  "Sold," 
said  Sherwood,  and  the  stock  changed  hands. 

In  course  of  time  the  Nevada  Bank  building 
was  erected  on  the  corner  of  Pine  and  Mont- 
gomery streets.  On  meeting  Sherwood  one 
day,  Mr.  Flood  remarked :  "We  built  that  Ne- 
vada Block  on  the  profits  of  that  1000  shares  of 
Consolidated  Virginia  you  sold  us." 

Subsequently,  in  the  Sierra  Nevada  and 
Union  deal,  Mr.  Flood  approached  Sherwood 
on  the  street  and  bought  from  him  5000  Union 
at  $200  a  share,  the  transaction  footing  up 
$1,000,000. 

Sherwood  built  the   Union   Block,   on  the 
gore  corner  of  Pine,  Davis  and  Market  streets. 
Meeting  Flood  one  day,  he  remarked,  "I  built 
that  Union  Block  with  the  profits  on  that  5000     Anecdotes 
Union  I  sold  you." 

[155] 


History  of  the  Sanfrandsco 


30 

General  George  S.  Dodge  had  served  in  the 
Civil  War  with  distinction.  Kind  and  affable 
to  acquaintances,  he  rapidly  formed  friendships 
with  the  greatest  operators. 

He  was  quite  a  trader,  with  large  accounts 
at  the  brokers'  offices.  He  met  a  friend  on  the 
street  and  said:  "Alvinza  Hayward  is  a  fine 
man."  "Why,"  he  was  asked.  He  said:  "A 
draft  was  presented  to  me  at  the  bank  this 
morning  and  I  was  wondering  where  I  would 
get  the  money  to  pay  it.  Meeting  Hayward  on 
the  street  just  now,  we  chatted  for  a  moment, 
shook  hands  and  parted.  Then  he  returned, 
saying:  'Oh,  by  the  way,  I  heard  at  the  bank 
this  morning  that  you  needed  some  money,  and 
I  have  just  left  $10,000  to  your  credit.'  Hand- 
somely done,  was  it  not?" 


Anecdotes 


Archie  Borland  was  a  miner,  a  good  expert, 
and  having  acquired  quite  a  large  fortune,  was 
a  large  trader.  Of  average  height,  yellow  hair, 
turning  gray,  rather  stout  and  of  an  exceed- 
ingly pleasant  temperament,  he  formed  strong 
friendships  among  the  members  of  the  Board. 

He   made   this   prophecy   when   the   lower 
levels  were  allowed  to  fill  with  water :  "It  will 
take  as  many  years  to  pump  out  the  water  as 
the  number  of  years  they  allow  it  to  fill  up." 
[156] 


Stock  andExdiangeBoard 


Pumping  stopped  in  1885.  Pumping  was  re- 
sumed in  1898,  after  13  years  of  inaction.  In 
1909,  eleven  years  have  gone  since  pumping 
was  resumed.  Will  they  pump  all  the  water  out 
in  the  next  two  years? 

32 

George  W.  Smiley  h£d  been  an  auctioneer 
and  joined  the  Board  in  1866.  Six  feet  high, 
with  long  black  whiskers  and  mustache,  chin 
always  shaved;  he  was  considered  the  hand- 
somest of  all  the  members. 

He  executed  orders  for  Gen.  R.  F.  Morrow 
before  the  last  named  joined  the  Board.  Mr. 
Morrow  was  allowed  to  place  a  small  stool  at 
the  side  of  Smiley's  desk,  giving  orders  on  the 
spot.  Mr.  Smiley  served  as  caller  in  1867,  when 
President  Cavallier  ceased  calling  the  stocks. 
Smiley  resigned  his  position  in  the  fall  of  1869, 
and  resumed  business  as  an  active  broker. 

From  his  long  experienced  as  an  auctioneer, 
Mr.  Smiley's  knowledge  of  the  standing  of 
business  men  in  San  Francisco  was  such  that 
he  was  often  consulted  by  Mr.  Ralston,  when 
applications  for  large  sums  of  money  were  pre- 
sented at  the  bank. 

Smiley  was  seen  figuring  at  his  desk  in  the 
Board  one  day.   Dropping  his  pencil  and  walk- 
ing over  to  the  seat  of  a  brother  broker,  he     Anecdotes 
marked  down  the  figures  $470,000,  saying:  "If 
[157] 


History  of  the  Sanfrancisca 


Anecdotes 


I  sold  today  at  these  prices  I  would  clean  up 
that  amount." 

33 

John  Perry,  Jr.  Ever  since  I  can  remember 
anything  in  San  Francisco,  John  Perry,  Jr.,  was 
a  broker.  In  1855  he  wore  a  silk  hat,  high,  old- 
fashioned  collar,  well  open  in  front,  and  the 
old-fashioned  black  stock  around  his  neck  and 
throat.  All  gentlemen  dressed  in  like  fashion 
in  those  days.  In  1906,  when  our  big  earth- 
quake came,  John  Perry,  Jr.,  wore  the  same 
style  of  silk  hat,  the  same  high-standing  collar, 
open  in  front,  and  the  same  old  black  stock 
around  the  throat,  and  the  fifty  years  did  not 
seem  to  have  made  much  difference  in  his  ap- 
pearance. He  looked  almost  the  same,  although 
at  the  latter  date  he  was  ninety  years  old. 

34 

Simon  and  Isaac  Glazier,  of  the  firm  of 
Glazier  &  Co.,  were  at  one  time  the  leading 
firm  among  the  brokers. 

Simon  Glazier  was  quite  a  slender  man,  but 
after  leaving  us  and  engaging  in  business  in 
the  New  York  Board,  he  grew  quite  stout.  On 
meeting  him  in  New  York  in  1899  he  had 
changed  so  that  it  was  difficult  to  recognize 
him.  His  brother,  Isaac  Glazier,  joined  the 
Board  in  1874,  taking  the  seat  of  his  former 
[158] 


Stock  and  Exchange  Board 


partner,  William  Seligsberg.  He  was  of  a  kind, 
gentle  disposition,  and  had  the  respect  of  all 
the  members. 

Louis  Sloss  joined  the  Board  in  1866,  selling 
his  seat  in  1873  to  J.  William  Brown.  All  early 
Californians  recollect  Mr.  Sloss,  a  splendid 
type  of  the  generous,  liberal,  openhanded,  Cali- 
fornia Pioneer. 

Lewis  Gerstle,  a  brother-in-law  of  Sloss, 
never  joined  the  Board.  He  was  known  among 
business  men  as  one  who  continually  kept 
posted  on  local  events  and  business  matters, 
setting  a  fine  example  in  these  matters  to  his 
younger  acquaintances,  to  whom  he  was 
always  ready  as  an  advisor  and  helper. 

Glazier  &  Co.  had  an  immense  business,  with 
many  of  San  Francisco's  wealthiest  men  on 
their  ledger.  Sloss  and  Gerstle,  in  the  Alaska 
trade,  determined  to  stop  speculating  in  mining 
stocks,  and  for  many  months  paid  no  atten- 
tion to  the  Board,  and  attended  exclusively  to 
their  business,  becoming  very  wealthy.  Glazier 
&  Co.  finally  induced  them  to  enter  into  the 
Sierra  Nevada  deal,  and  they  bought  at  rather 
high  figures,  when  it  was  thought  Sierra  Ne- 
vada would  develop  a  great  bonanza.  The 
speculators,  in  this  instance,  were  not  required 
to  advance  any  money,  Glazier  carrying  their 
stock  for  them.  Finally,  the  expected  develop-  Anecdotes 
ment  did  not  materialize  and  the  stock  dropped. 
[159] 


History  of  the  Santraneisco 


Anecdotes 


Instructions  had  been  given  to  Glazier,  by 
Sloss  and  Gerstle,  to  send  no  accounts  or 
notices  to  their  office,  as  the  transaction  was 
to  be  kept  a  secret.  The  stock  did  not  advance 
again  and  they  ordered  it  sold.  Inquiring  at 
the  office  for  their  bill,  they  found  they  were 
a  loser  over  $100,000,  which  was  promptly 
paid.  They  were  so  wealthy,  however,  that, 
in  telling  the  story,  they  regarded  it  as  a  great 
joke. 

35 

We  had  a  military  man  in  the  Board  also, 
Mr.  Charles  W.  Bonynge.  As  a  speculator  he 
was  in  the  same  class  with  Keene — impulsive, 
daring,  and  best  of  all,  successful. 

Bonynge  was  a  born  horseman  and  would 
spend  days  in  a  journey  on  horseback.  He 
was  of  medium  size,  his  once  black  hair  and 
whiskers  turning  white. 

We  have  always  understood  that  Bonynge 
was  one  of  England's  immortal  six  hundred 
which  made  the  grand  cavalry  charge  at  the 
battle  of  Balaklava  in  the  Crimean  War.  His- 
tory says  there  were  150  survivors  of  that 
slaughter.  Bonynge,  like  a  true  military  hero, 
would  never  more  than  mention  the  event. 

He  was  a  great  student  of  horticulture.    He 

was  a  broker  in  Virginia  City  from  1864  to 

1870,   joining  the   Board   in  the   latter  year, 

buying  the  seat  of  Andrew  Jackson  Moulder. 

[160] 


Stock  and Exchange Board 


He  amassed  a  large  fortune  and  is  now  living 
in  London,  with  the  highest  of  nobility  and 
royalty  itself  as  his  guests  on  special  oc- 
casions. 

36 

Mr.  J.  B.  E.  Cavallier  was  a  charter  mem- 
ber and  first  president,  holding  this  office  for 
the  first  ten  years  of  the  Board's  existence. 
No  man  stood  higher  among  the  early  mem- 
bers than  Mr.  Cavallier.  Born  in  France,  he 
found  his  way  to  California  in  the  fifties. 

One  of  the  duties  devolving  upon  the  presi- 
dent was  to  call  the  list  of  stocks  at  Board 
sessions,  and  the  actions  and  decisions  of  Mr. 
Cavallier  have  been  followed  by  all  the  suc- 
ceeding callers  and  chairmen. 

While  Cavallier  was  in  the  chair  one  day 
he  made  a  ruling  in  which  Mr.  Jackson  Mc- 
Kenty  did  not  thoroughly  concur,  whereupon 
Mr.  McKenty  tipped  back  his  chair  and  drove 
out  all  the  spare  breath  in  his  body  in  a  pro- 
longed whistle. 

"Fine  Mistaire  McKenty  fifty  dollaire," 
said  President  Cavallier.  This  remark  brought 
Mr.  McKenty  back  into  a  respectful  position. 
"What  for?"  he  said.  "Because  you  wheestle," 
said  the  president.  "Why,  no,  I  did  not 
whistle,"  remarked  McKenty.  Leaning  down  Anecdotes 
over  the  rostrum,  Cavallier  remarked:  "I  bet 
[161] 


History  of  the,  Sanfraneisco 


Anecdotes 


you  fifty  dollaire  you  wheestle."    It  was  the 
only  bet  McKenty  was  ever  known  to  refuse. 

37 

Henry  Schmiedell,  a  charter  member,  was 
treasurer  of  the  Board  for  twenty  years.  He 
was  a  great  favorite,  good-humoredly  taking 
our  jokes  concerning  his  wig  and  approaching 
old  age.  He  was  a  perfect  gentleman,  setting 
a  fine  example  of  deportment  to  the  younger 
members. 

In  our  gardens  and  conservatories  pinks  are 
continually  in  bloom,  and  our  friend,  Mr. 
Schmiedell,  always  dressed  in  the  height  of 
fashion,  and  would  invariably  appear  among  us 
with  a  fine  pink  placed  in  the  lapel  of  his  coat. 
A  tall,  handsome  man,  with  a  florid  com- 
plexion, he  enjoyed  so  large  a  clientage  that 
he  was  compelled  to  call  upon  other  brokers 
to  assist  him  in  executing  his  orders.  He  re- 
tired early  with  a  large  fortune. 

The  firm  of  Schmiedell,  Hochstadter  & 
Co.  was  known  all  over  the  Pacific  Coast. 
The  seat  standing  in  the  name  of  Henry 
Schmiedell  is  the  one  single  seat  that  remained, 
without  a  change,  from  the  organization  of  the 
Board  until  July,  1903,  when  the  Board's  Pine 
street  building  was  sold  and  the  proceeds 
divided  among  the  members.  This  seat  then 
returned  to  the  Board. 


Stock  and  Exchange  Board 


5fe       ^N 

^ 


38 

In  Bonanza  days  there  were  two  newspapers 
specially  devoted  to  stock  transactions  and 
news.  Dick  Wheeler  was  the  original  pro- 
prietor and  editor  of  the  "Stock  Report."  This 
paper  was  established  about  1866,  a  sheet  at 
first  in  fine  type,  thin  paper,  about  a  foot  long. 
The  rise  in  the  prices  of  the  stocks  soon  com- 
pelled Wheeler  to  enlarge  his  paper  and  con- 
duct it  on  modern  journalistic  principles. 

"The  Stock  Exchange,"  with  D.  M.  Ver- 
denal  as  editor  and  proprietor,  was  established 
about  1872  and  continued  until  the  decline  in 
the  stock  business  caused  its  discontinuance. 
The  "Stock  Report"  outlived  its  rival  twenty 
years  or  more. 

39 

S.  J.  Sparrow,  an  Englishman,  was  a  very 
early  member.  As  yet  we  have  the  names  of 
but  37  of  the  original  forty  members,  and  be- 
lieve that  Mr.  Sparrow's  name  should  be 
placed  among  the  missing  three  names.  In  the 
early  days  of  the  Board,  the  members  were 
furnished  at  each  session  with  a  list  of  the 
stocks  traded  in,  a  column  being  placed  for 
the  prices  and  number  of  shares  sold.  This 
was  prior  to  the  issuance  of  a  printed  daily 
list.  Mr.  Sparrow  had  the  credit  of  writing  his  Anecdotes 
list  in  the  most  comprehensive  manner,  in  bet- 


History  of  the  Sanfhmcisco 


members,  and  when 
inspection   he   took 


session  of  the  Board  was  held  April  7th,  out 
of  respect  to  his  memory. 


40 

On  July  22,  1873,  James  R.  Keene,  Henry 
Williams  and  John  W.  Coleman  formed  the 
co-partnership  firm  of  Keene,  Williams  & 
Coleman.  Each  partner  of  this  firm  was  worth 
more  than  $500,000.  For  some  reason  the  firm 
soon  dissolved. 

January  2,  1875,  the  firm  of  E.  F.  Hall  & 
Co.  was  formed,  consisting  of  E.  F.  Hall  and 
James  R.  Keene.  It  was  understood  that 
Keene's  capital  in  this  firm  was  $300,000;  that 
of  Hall  being  $200,000. 


Another  wealthy  firm  was  that  of  Cheese- 
man,  Head  &  Thornburgh,  composed  of 
Morton  Cheeseman,  A.  E.  Head  and  William 
Thornburgh,  each  rated  at  the  time  as  worth 
more  than  half  a  million. 


42 

Anecdotes         James  H.  Latham  had  a  half  million  invested 
in  his  firm  and  enjoyed  a  very  large  business. 
[164] 


HOTAW38   .2   .U   ,MAHTAJ   .8    MOTJIM 


Sanfrandsco 


>-m  thar  i  the  members,  and  when 

1    in   his  office   for   inspection  he   took 

great  pride  in  its  appearance. 

He  died  April  5,  1875,  aged  50  years.    No 

session  of  the  Board  was  held  April  7th,  out 

of  respect  to  his  memory. 


January  a,  1875,  the  firm  of  E.  R  Hall  & 
Co.  was  formed,  consisting  of  E.  F.  Hall  and 
James  R.  Keene.  It  was  understood  that 
Keene's  capital  in  this  firm  was  $300,000 ;  that 
of  Hall  being  $200,000. 

. 

wealthy  firm  was  that  of  Cheese- 


-•- 
James  H.  Latham  had  a  half  million  invested 

MILTON  S.  LATHAM,  U.  S.  SENATOR 


Stock  and  Exchange  Board 


James  K.  S.  Latham  and  Homer  S.  King  were 
connected  with  him. 

Mr.  Latham  had  been  the  agent  of  Wells, 
Fargo  &  Co.  in  Virginia  City,  Nevada,  in  the 
palmy  days  of  1862-1872.  He  was  a  brother  of 
Milton  S.  Latham,  the  latter  having  occupied 
the  position  of  Governor  of  this  State  and 
afterwards  United  States  Senator. 

Mr.  James  H.  Latham  had  hosts  of  friends. 
He  was  of  medium  height,  with  thin,  sandy 
hair  and  beard.  His  experience  as  a  banker 
made  him  a  good  business  man.  He  became 
quite  wealthy  in  Virginia  City,  removing  to 
San  Francisco  and  opening  an  office  as  broker 
in  1873.  His  cousin,  J.  K.  S.  Latham,  had  been 
connected  with  the  banking  department  of 
Wells,  Fargo  &  Co.  in  San  Francisco.  Taller 
than  his  cousin,  with  black  hair  and  beard, 
J.  K.  S.  Latham  was  well  known  among  our 
business  men,  and  soon  became  connected 
with  Mr.  James  H.  Latham  in  his  business  as 
a  broker. 

Homer  S.  King,  another  Wells,  Fargo  &  Co. 
magnate,  had  occupied  the  position  of  cashier 
in  the  bank  at  Virginia  City,  and  from  the 
intimate  relations  always  existing  between 
them,  was  called  by  the  Lathams  into  the  firm 
to  assist  in  their  great  and  growing  business. 

Homer  S.  King,  on  retiring  from  the  Board,     Anecdotes 
became  president  of  the  banking  department 
[165] 


History  of  the  Sanfhmcisco 


of  Wells,  Fargo  &  Co.  in  this  city,  and  after- 
Wards  became  president  of  the  Bank  of  Cali- 
fornia. 

He  is  of  medium  height,  florid  complexion, 
mustache  now  gray,  and  always  commanded 
the  attention  of  financiers  on  this  Coast. 

43 

S.  B.  Boswell  was  another  very  wealthy 
broker,  of  magnificent  physique,  broad  shoul- 
ders and  large  chest,  with  a  voice  that  could 
be  heard  throughout  the  room. 


Anecdotes 


44 

H.  H.  Noble  &  Co.,  consisting  of  H.  H. 
Noble  and  Henry  Epstein,  had  a  splendid 
business.  One  of  their  principal  customers  was 
E.  J.  Baldwin. 

Other  prominent  members  of  the  Board  in 
1875  were: 


J.  W.  Brown 
Brooks  &  Lee 
William  Burling 
W.  C.  Budd 
J.  M.  Burtsell 
E.  E.  Cahill 
Dr.  C.  W.  Fox 
G.  A.  Coursen 
Child  &  Maguire 
Crocker  &  Gurnett 
Cope  &  Davis 


Williams,  Deane  &  Co. 
Cantin  &  Everett 
Samuel  Dixon 
Woods  &  Freeborn 
W.  L.  Duncan 
Greenebaum  &  Helbing 
Jos.  Ford 
Welch  &  Herr 
J.  R.  Fitch 
Hale,  Page  &  Wilson 
G.  F.  M.  Glover 
[166] 


Stock  and  Exchange  Board 


Cyrus  Jones 
C.  H.  Hopkins 
J.  H.  Jones  &  Co. 
Hubbard  &  Johnson 
Kenney  &  Dyer 
Higgins  &  Conklin 
A.  G.  Kinsey 
Frank  Hassey 

A.  H.  Lissak 
L.  F.  Loveland 
Harry  Logan 
F.  Lawton 
Callaghan  &  Lynch 
J.  McKenty 

J.  W.  Mahoney,  Jr. 

B.  B.  Rorke 

M.  Jasper  McDonald 
J.  N.  Vimont 
McDonald  &  Whitney 
H.  Williams 
Parker  &  Fry 
Page  &  Eels 
J.  C.  Winans 


E.  P.  Peckham 
R.  F.  Rogers 
J.  E.  Shawhan 
J.  M.  Shotwell 
Geo.  W.  Smiley 
Traynor  &  Knox 
Chas.  Stoutenborough 
Sig.  Steinhart 

B.  F.  Sherwood  &  Co. 
Schmitt  Bros. 
W.  Turnbull 

F.  E.  Wilke 
L.  A.  Zinns 

J.  D.  Walker  &  Co. 

H.  H.  Scott 

L.  T.  Haggin 

H.  Hart 

S.  B.  Wakefield 

Neal  &  Fry 

Geo.  T.  Marye,  Jr. 

Marcus  P.  Hall 

Eugene  E.  Dewey 

Joseph  L.  King 

45 


Toward  the  close  of  1875,  as  our  business 
had  increased  to  so  great  an  extent,  and  as 
the  narrow,  straight  aisle  leading  to  the  ros- 
trum could  not  hold  all  of  us,  while  trading  on 
an  active  stock,  at  an  executive  session,  Mr. 
H.  H.  Noble  suggested  the  idea  that  we  re- 
move the  cumbrous  desks,  and  in  their  places 
put  chairs,  arranging  them  in  an  oval  form, 
leaving  a  large  space  in  the  center  where  we 


Anecdotes 


History  of  the  SanFhmdsca 


Anecdotes 


'could  congregate  and  be  less  crowded.  In 
explaining  the  proposed  change,  Mr.  Noble 
showed  so  much  good  sense  that  the  Board 
made  him  a  committee  of  one  to  perfect  the 
improvement  and  gave  him  an  unlimited  order. 
The  change  was  soon  made  and  gave  such 
great  satisfaction  that  the  Board  has  ever 
since  retained  this  position  for  seats  of  its 
members,  and  we  owe  to  Mr.  Noble  all  our 
gratitude  for  the  great  convenience  it  has 
proven  to  be  to  the  members. 

46 

Dr.  C.  W.  Fox  joined  the  Board  about  April, 
1871,  purchasing  his  seat  from  D.  B.  Rising. 
He  had  been  connected  with  Edward  Cahill 
for  some  time.  About  1873  the  firm  was  dis- 
solved and  Dr.  Fox  opened  an  office  for  the 
transaction  of  business.  He  soon  received 
heavy  orders,  not  only  in  San  Francisco,  but 
from  Virginia  City,  and  his  purchases  and 
sales  soon  equaled  those  of  any  other  broker. 
Always  careful  and  attentive  to  business,  he 
soon  acquired  a  large  fortune.  After  the  1885- 
1886  deal  he  decided  to  discontinue  active  busi- 
ness, and  though  a  member  as  late  as  1904, 
and  a  regular  attendant  at  the  Board,  he  prob- 
ably attended  from  force  of  habit.  At  this  date 
(Sept.,  1909,)  he  is  still  in  good  health  and 
living  at  San  Jose. 

[168] 


Stock  and  Exchange  Board 


47 

In  stock  deals  the  greatest  speculation 
occurs  in  the  mine  where  new  developments 
are  discovered,  and  also  in  adjoining  proper- 
ties to  which  the  development  could  extend. 
The  uncertainty  connected  with  ore  develop- 
ment in  adjoining  mines  is  apt  to  make  specu- 
lation more  active  in  their  shares. 

The  development  in  Sierra  Nevada  in  1878 
caused  that  stock  and  the  stock  of  its  neigh- 
bor, the  Union,  to  advance.  Sierra  Nevada 
sold  at  $280  and  Union  at  $200. 

Many  members  and  many  operators  have  at 
different  times  had  control  of  these  mines. 
Mark  McDonald,  John  Skae,  Flood  &  O'Brien, 
Robert  F.  Morrow,  and  others,  have  controlled 
Sierra  Nevada.  Patten  controlled  Union  when 
the  lower  levels  flooded  and  destroyed  a 
$1,200,000  pump  in  the  Union.  The  Sierra 
Nevada  and  Union  deal  is  described  elsewhere. 

Sierra  Nevada's  production  is  $1,035,000 
Union's  production  is  ........     2,741,000 


Ophir  and  Mexican  generally  advance  to- 
gether. Mexican  was  once  a  portion  of  Ophir. 
It  was  a  stock  dividend  declared  by  Ophir  to 
its  stockholders.  The  manipulators  of  Ophir 
have  been  numerous.  In  olden  times  an  Ophir  Anecdotes 
deal  rejoiced  the  hearts  of  everybody.  Any 


History  of  the  Sanfrancisco 


Anecdotes 


person  could  make  money  in  an  Ophir  deal,  as 
the  whole  list  sympathized  with  it.  As  it  rose 
in  value  so  did  the  entire  list,  and  when  it 
broke  in  price,  down  went  everything  with  it. 
A.  K.  Lissak,  Baldwin,  Sharon,  Flood  and 
others  have  controlled  Ophir. 

Flood  and  Sharon,  at  one  time  antagonistic, 
joined  hands  and  bought  together.  Col.  Eyre 
was  Flood's  broker,  and  I  executed  orders  to 
some  extent  for  Sharon.  An  order  to  buy  was 
given  to  Col.  Eyre,  who,  always  courteous, 
always  well  bred,  sent  me  the  order  to  execute 
in  the  Board.  The  order  was  written  on  a 
small  sheet: 

"Buy  Ophir  all  day  long  at  45.  Platt." 
Platt  was  clerk  to  Eyre.  My  clerks  said  the 
order  was  in  the  usual  form  sent  out  from 
Eyre's  office  and  was  correct.  I  went  to  the 
Board  early,  first  ascertaining  that  the  stock 
was  selling  at  $39  in  the  Pacific  Board.  The 
stock  came  in  readily  before  the  Board  and  I 
purchased  several  thousand  shares  as  high  as 
$45  before  the  Board.  All  at  once  the  idea 
struck  me:  "Is  this  order  correct?  You  are 
making  immense  purchases  on  a  clerk's  order." 
I  hesitated  for  a  minute.  Ehrlich  was  offering 
400  shares  at  $45.  I  turned  my  back  to  look 
at  the  order  again — a  little  bit  worried — and 
met  Col.  Eyre's  eye  fastened  on  me.  That  was 
enough;  I  felt  it  was  O.  K. 
[170] 


Stock  and  Exchange  Board 


Ehrlich  had  offered  his  400  shares  down  to 
$43,  and  others  were  tumbling  in  trying  to 
sell,  as  I  had  stopped  buying.  In  a  second  I 
had  bought  Ehrlich's  stock  and  several  lots 
from  others  and  had  it  back  to  $45  bid  in  a 
minute,  clearing  the  floor  of  all  $45  stock.  In- 
stantly, several  brokers  were  at  my  elbow 
congratulating  me  on  what  they  considered 
an  admirable  method  of  executing  the  order, 
and  giving  me  great  credit.  They  did  not 
know  how  scared  I  was  for  a  minute,  and 
were  giving  me  credit  for  an  action  I  did  not 
deserve.  But  you  can't  explain  your  actions, 
nor  speak  at  all  about  your  orders.  On  the 
regular  call  I  bought  all  stock  offered  at  $45, 
and  bought  all  day  long.  It  was  a  pretty  good 
order. 

I  have  narrated  in  another  place  the  strug- 
gle between  Sharon  and  Baldwin  for  the  con- 
trol of  Ophir,  where  Sharon  paid  as  high  as 
$150  for  cash  stock,  and  selling  it  "seller 
ninety"  as  low  as  $64  and  as  high  as  $90.  In 
later  days,  Mr.  J.  C.  Flood  again  bought  con- 
trol, buying  it  at  his  office — paying  $20  a  share 
— a  little  higher  than  Board  price. 

In  the  great  Bonanza  deal  Ophir  sold  as 
high  as  $320,  with  100,000  shares  as  its  capital 
stock. 

Will  they  ever  give  us  another  Ophir  deal?     Anecdotes 

Ophir  has  produced  $15,314,000. 


History  of  the  Sanfrancisco 


49 

Consolidated  Virginia  at  present  adjoins 
Ophir  to  the  south  with  1310  feet.  In  1875  it 
was  divided  into  two  mines,  California  with 
600  feet,  next  to  Ophir,  then  Consolidated  Vir- 
ginia with  710  feet,  further  south.  The  great 
deal  of  these  two  stocks  surpassed  in  magni- 
tude anything  ever  listed  on  the  Board.  They 
each  sold  as  high  as  $750  cash  and  $800  on 
time  sales. 

It  is  related  previously  in  these  pages  where" 
Mr.  Flood  bought  the  control  of  Central  No. 
2,  and  eventually  formed  the  two  companies 
of  108,000  shares  each.  After  selling  away  up 
in  the  hundreds  of  dollars,  it  was  thought  best, 
in  order  to  allow  all,  rich  and  poor  alike,  to 
trade  in  these  stocks,  to  still  further  increase 
the  capital  stock,  and  they  were  increased  to 
540,000  shares  each,  equal  to  1,080,000  shares. 
The  stories  of  speculations  in  these  shares 
would  fill  pages.  When  they  reached  their 
highest,  Dr.  W.  S.  Bronson  came  down  from 
Virginia  City,  enthusiastic  about  their  future, 
prophesying  they  would  sell  at  $3,000  each; 
that  on  the  1300  foot  level  going  east,  as  fast 
as  they  could  cut  through  the  east  clay  walls, 
they  encountered  more  ore;  and  it  was  told 
us  that  the  pay  ore  on  the  1300  foot  level  was 
Anecdotes  looo  feet  wide.  Many  San  Francisco  and  Vir- 
ginia City  people  had  purchased  at  compara- 
[172] 


£d8I   ,AdAV3W   ,YTID   AIW1OHIV 


49 

iidated    Virginia    at    present    ad 
»  the  south  with  1310  feet.   In  1875  it 
ided  into  two  mines,  California  with 
next  to  Ophir,  then  Consolidated  Vir- 

U.   The  great 


2,  and  event 
of  108,00 

in  the  hur  vas  thought  best, 

in  order  to  allow  all,  rich  and  poor  alike,  to 

trade  in  these  stocks,  to  still  further  increase 

the  capital  stock,  and  they  were  increased  to 

qua!  to  1,080,000  shares. 

these  shares 


-  level  was 
and  Vir- 


VIRGINIA   CITY,   NEVADA,   1865 


Stock  and  Exchange  Board 


tively  low  prices,  making  large  fortunes  by 
their  operations.  They  invested  their  profits 
in  San  Francisco  real  estate. 

One  day  California  broke  suddenly  from 
$500  and  sold  as  low  as  $300.  It  speedily  ral- 
lied, and  in  five  days  was  back  to  $500  again. 
We  learned  that  they  had  struck  a  "horse"— a 
body  of  barren  white  quartz — in  the  middle  of 
their  rich  ore.  After  drifting  40  feet  through 
it  the  rich  ore  again  came  in.  At  the  height  of 
this  deal  trading  continued  practically  all  day 
long,  and  at  night  transactions  were  made  in 
the  corridors  of  the  principal  hotels.  Every- 
body was  getting  rich,  and,  really,  to  us 
brokers,  it  looked  as  if  there  never  would  be 
an  end  to  our  great  business. 

Money  flowed  in  San  Francisco  freely;  and 
we  might,  possibly,  compare  our  existence  as 
somewhat  similar  to  that  of  King  Solomon's 
time,  when  gold  and  silver,  cedar  and  algum 
trees,  were  accounted  as  nothing.  And  though 
we  did  not  have  our  Queen  of  Sheba,  with  her 
present  of  120  talents  of  gold,  we  had  at  least 
our  great  Comstock  Lode,  with  the  millions 
already  derived  and  with  its  expected  future. 
In  fact,  at  that  time  you  could  buy  "A.  O.  T.," 
which  means  "any  old  thing,"  making  money 
on  the  transaction.  Many  of  us  had  a  team  of 
horses,  and  one  or  two  buggies,  kept  at  the  Anecdotes 
club  stable  on  Taylor  street,  near  Post. 
[173] 


History  of  the  Santrancisco 


Anecdotes 


All  the  brokers  were  familiar  with  the  Park, 
then  simply  a  figure  8,  afterwards  with  a  road 
cut  through  to  the  beach.  We  could  tell  all 
about  the  Cliff  House  and  old  Col.  Foster.  If 
any  broker  could  get  through  the  month  with 
his  personal  expenses  less  than  $1000  he  was 
fortunate.  It  looked  as  if  it  would  never  stop. 

When  we  were  kept  at  the  office  at  night, 
writing  up  the  business  of  the  day,  fifteen  or 
twenty  of  us  would  meet  at  some  favorite  din- 
ing place.  One  would  pay  the  dinner  bill, 
another  the  wine  bill.  Hurry  through  it  and 
back  to  the  office  again.  Old  Ned,  who  kept 
the  Mercantile  Lunch,  would,  at  any  time,  send 
plates,  dishes  and  food  to  the  offices  for  em- 
ployers and  clerks  alike.  When  Edwin  Booth 
played  Richard  III,  Macbeth  and  Othello  at 
the  old  California,  we  would  take  tickets  for 
two  weeks  at  a  time,  and  attend  every  night, 
except  Sunday. 

When  told  that  the  Bonanza  firm — con- 
trollers of  Consolidated  Virginia — would  pay 
each  member  $500,000  a  month  in  dividends,  it 
was  accounted  as  nothing. 

With  our  seats  worth  $40,000,  with  a  large 
commission  account  accumulated  at  the  end 
of  the  month,  with  our  offices  crowded  with 
customers  from  early  morning  until  close  of 
Board — well,  they  were  the  best  days  we  ever 
experienced  in  the  Board. 


Stock  and  Exchange  Board 


Will  they  ever  give  us  another  Consolidated 
Virginia  deal? 

The  production  of  Consolidated  Virginia  and 
California  foots  up  $133,471,000. 

50 

Best  &  Belcher,  adjoining  Consolidated 
Virginia  to  the  south,  would  always  act  in 
sympathy  with  the  latter.  It  was  the  opinion 
of  the  street  that  a  continuance  of  the  ore 
body  in  Consolidated  Virginia  would  some  day 
be  opened  in  Best  &  Belcher.  Mr.  Coll  Deane 
hired  Union  Hall  on  Howard  street,  and,  before 
a  large  audience,  advanced  this  idea  with  other 
remarks  on  the  future  of  the  lode.  It  was 
always  a  favorite  with  operators  at  the  north 
end  of  the  Comstock,  and  was  well  spoken  of 
by  Mr.  Fair  to  his  friends.  It  was  never 
thoroughly  prospected,  and  for  years  we 
looked  forward  to  a  deal  in  this  stock.  My 
recollection  is  that  it  was  held  at  about  $90 
for  a  long  time. 


Gould  &  Curry  was  the  first  mine  on  the 
Comstock  to  uncover  a  large  body  of  rich  ore. 
In  1862,  and  immediately  afterwards,  it  was 
producing  largely,  paid  large  dividends — $250 
a  month — and  several  early  operators  were  Anecdotes 
made  wealthy  by  the  shares  they  had  pur- 


History  of  the  Sanlhmeisco 


Anecdotes 


chased.  It  sold  as  high  as  $6,500  a  foot,  and, 
as  late  as  January,  1864,  was  still  selling  at 
$5,000,  paying  dividends.  They  built  an  im- 
mense mill  at  seven-mile  canyon,  about  two 
miles  east  of  the  mine. 

Its  rich  ore  was  discovered  nearer  to  the 
surface  than  elsewhere  at  the  north  end. 

Mr.  Charles  Strong  was  the  superintendent 
during  its  palmy  days.  Charles  Bonner,  Louis 
Janin,  I.  L.  Requa  and  others  have  since  tried 
to  develop  another  bonanza  in  this  mine. 

Gould  &  Curry  has  produced  $15,525,000. 

Andrew  McCreary  made  a  large  fortune  in 
Gould  &  Curry  and  other  mines  in  1862. 

52 

Savage  and  Hale  &  Norcross  ran  pretty  well 
together.  In  locating  mines  the  prospector 
erects  four  monuments  at  the  four  corners  of 
the  location.  As  the  Comstock  Lode  runs  north 
and  south,  two  of  these  monuments  would  be 
placed  on  the  croppings,  the  other  two  further 
east  in  a  straight  line.  The  extreme  south- 
east monument  of  the  Savage,  by  some  mis- 
take, was  placed  a  little  north  of  its  proper 
place,  and  thus,  should  the  north  and  south 
lines  be  run  out  to  the  desert  east  of  Virginia 
City,  they  ultimately  would  meet,  thus  giving 
all  of  the  Savage  mine  to  its  southern  neighbor, 
the  Hale  &  Norcross.  But  after  some  discus- 
[176] 


Stock  and  Exchange  Board 


sion  on  the  subject  this  matter  was  settled, 
and  Savage  stockholders  need  no  longer  be 
worried  about  it. 

In  1870  Alvinza  Hay  ward,  on  meeting 
Ehrlich  on  the  street,  ordered  him  to  buy  some 
Savage  stock  for  him.  "Well,  that  is  rather  an 
ambiguous  order,  Mr.  Hayward,"  said  Ehrlich. 
"How  much  shall  I  buy?"  "Well,"  said  Mr. 
Hayward,  "you  cannot  buy  more  than  the 
whole  mine."  "Oh,  that's  it,"  said  Ehrlich. 

Meeting  his  friend  John  Livingston,  a  large 
holder  of  Savage,  Ehrlich  asked  him  what  he 
would  take  for  his  stock.  Livingston  stated  a 
price,  some  $30  or  $40  above  the  market  price, 
not  expecting  it  to  be  taken.  To  his  surprise 
Ehrlich  bought  it.  And  then  commenced  the 
Savage  deal.  It  rose  to  $700  a  share.  George 
F.  Rogers  owned  1000  shares,  purchased  at  a 
low  price,  and  could  have  sold  all  of  it  at  $700 
a  share  to  Hayward,  but  held  out  for  still 
higher  prices.  The  stock  had  a  big  tumble  one 
day,  and  never  rallied. 

Gen.  Robert  F.  Morrow  was  the  first  super- 
intendent of  Savage.  He  arrived  in  Virginia 
City  in  ^859  to  take  charge  of  the  mine.  He 
conducted  it  safely  through  all  of  its  troubles, 
litigation  and  early  developments.  He  found 
its  first  body  of  good  ore  about  the  200  or 
300  foot  level  by  drifting  in  through  the  Gould 
&  Curry. 

[177] 


Anecdotes 


History  of  the  SanFraneisco 


Anecdotes 


Can't  tell  whether  Morrow  ever  shouldered 
a  musket  or  had  a  sword  buckled  to  his  side. 
On  a  visit  to  Washington  in  the  yo's,  while 
Grant  was  President,  he  found  many  Senators, 
Congressmen  and  Washingtonians  tipping 
their  hats  to  him,  greeting  him  as  "General." 
He  soon  found  there  was  a  close  resemblance 
between  General  Grant  and  himself,  and  those 
who  saluted  him  thought  they  were  addressing 
the  hero  of  Appomatox. 

Savage  has  produced  $20,552,000. 

53 

Hale  &  Norcross  has  a  history  of  its  own. 
Drury  Malone  was  connected  with  its  early 
history.  Elsewhere  the  great  contest  for  con- 
trol of  Hale  &  Norcross  and  consequent  corner 
of  the  stock  in  1868  is  described.  Subsequent 
to  that  time  Flood  &  O'Brien  obtained  control. 
It  produced  considerable  bullion;  was  quite 
active  in  the  Sierra  Nevada  and  Union  deal  of 
1878,  and  for  some  15  or  20  years  has  been 
controlled  by  one  set  of  officers. 

Hale  &  Norcross  has  produced  $11,486,000. 

54 

Chollar-Potosi — at  one  time  separate — great 
litigation — about  1870  a  consolidation — after- 
wards a  separation,  with  two  corporations  as 
at  present. 


Stock  and  Exchange  Board 


A.  De  Land  was  an  early  superintendent  of 
Chollar,  followed  by  Harvey  Beckwith. 

I.  L.  Requa  developed  the  body  of  ore  found 
in  the  Blue  Wing  Potosi  portion  of  the  mine. 

After  this  discovery,  during  a  dull  spell  in 
the  Board,  Chollar  sold  at  $12  and  stood  at 
that  price  for  a  year,  paying  a  $i  dividend 
monthly  for  12  months.  As  the  ore  body  in- 
creased and  receipts  became  larger,  the  com- 
pany paid  a  dividend  of  $5  monthly,  and  was 
compelled  for  many  months  to  pay  an  extra 
dividend  of  $5,  in  order  to  disburse  the  money 
flowing  into  its  treasury.  The  stock  sold  as 
high  as  $75  during  this  period. 

Most  business  men,  on  meeting  others,  with 
whom  they  are  about  to  enter  into  financial 
transactions,  will  form  an  opinion  instanter 
concerning  them.  One  could  not  view  Isaac 
Lawrence  Requa  other  than  favorably.  He 
was  6  feet  2  inches  in  height,  and  at  his  prime 
weighed  240  pounds.  When  delivering  his 
views  on  any  subject,  or  asked  an  opinion,  he 
would  express  himself  or  weigh  his  answers 
so  carefully  as  to  impress  his  hearers  with  the 
fact  that  they  were  conversing  with  a  truthful 
man,  and  one  above  guile  or  deceit.  Mr.  Wil- 
liam Sharon  and  others  in  power  on  the  Corn- 
stock  had  implicit  confidence  in  any  opinion 
given  by  Mr.  Requa,  and  would  guide  them-  Anecdotes 
selves  accordingly. 


History  of  the  Sanfrancisco 


Anecdotes 


Requa's  success  in  discovering  ore  in  the 
Chollar-Potosi  was  so  great,  that  he  was  urged 
to  retain  the  position  of  superintendent  for 
many  years.  Under  his  administration  the 
Combination  Shaft,  3000  feet  east  of  the  crop- 
pings,  was  planned  and  finished.  The  Great 
Combination  Pump,  as  it  was  called,  received 
Mr.  Requa's  constant  attention.  Many  of  the 
improvements  were  inventions  of  his  brain, 
and  when  the  pump  was  finished  it  was  con- 
sidered the  most  perfect  of  its  class  in  the 
world,  reaching  a  depth  of  3300  feet  in  the 
lode. 

This  great  shaft  has  been  filled  with  water 
below  the  1750  foot  level  for  24  years.  It  is 
feared  that  a  portion  of  the  shaft  has  caved, 
and  as  efforts  are  now  being  made  to  exhaust 
the  water  on  the  lode,  the  Combination  Shaft 
will,  no  doubt,  receive  early  attention. 

While  residing  at  Virginia  City,  Mr.  Requa 
ascertained  that  his  telegrams,  even  when  sent 
in  cipher,  were  being  tampered  with,  and  that 
his  orders  for  stock  transactions  were  known 
on  the  street  before  the  Board  opened.  The 
president  of  the  company,  Mr.  A.  K.  P.  Har- 
mon, received  a  letter,  stating  that  on  such  a 
date,  Mr.  Requa  would  telegraph  him  to  buy 
all  the  stock  of  their  company  under  $100,  but 
that  he  should  disregard  the  order  entirely.  The 
matter  being  thus  well  understood,  the  tele- 
[180] 


AUQ3H  .J  DAA8I 


fhmdseo 


;ua'»  success  in  discovering  ore  in  the 

ir-Potosi  was  so  great,  that  he  was  urged 

to   retain  the  position  of  superintendent  for 

many    years.    Under    his    administration    the 

Combination  Shaft,  3000  feet  east  of  the  crop- 

p:ngs,  was  planned  and  finished.    The  Great 

» nation  Pump,  as  it  was  called,  received 

attention.    Ma 


This  great  shaft  has  been  filled  with  water 
below  the  1750  foot  level  for  24  years.  It  is 
feared  that  a  portion  of  the  shaft  has  caved, 
and  as  efforts  are  now  being  made  to  exhaust 
the  water  on  the  lode,  the  Combination  Shaft 
will,  no  doubt,  receive  early  attention. 

While  resk!  City,  Mr.  Requa 


date,  Mr 

all  the  stock  of  their  company  under  $100,  but 

that  he  should  disregard  the  order  entirely.  The 

ISAAC  L.  REQUA 


Stock  and  Exchange  Board 


gram  was  sent.  The  stock  on  the  previous 
evening  was  quoted  at  $58.  To  the  great  sur- 
prise of  those  connected  with  the  matter,  one 
of  the  most  prominent  speculators  was  out  on 
the  street  early,  persistently  buying  all  the 
stock  offered,  until  the  price  was  raised  to 
$75  before  the  Board.  There  were  no  orders  at 
the  Board  to  buy  the  stock,  and  it  dropped 
again  to  $58  or  thereabouts. 
Chollar-Potosi  has  produced  $13,985,000. 

55 

Bullion — located  in  the  Divide,  between 
Virginia  City  and  Gold  Hill — has  never  opened 
up  any  large  body  of  ore. 

J.  D.  Walker  and  John  Mackay  had  charge 
of  the  mine  about  1864  to  1868. 

56 

Exchequer  and  Alpha  will  sympathize  with 
a  development  in  either. 

When  the  banking  house  of  John  Sime  & 
Co.  suspended  in  1871,  those  who  owed  them 
money  had  left  many  stocks  as  security,  among 
them  a  large  block  of  Exchequer,  the  bank 
itself  an  extensive  stockholder.  In  the  subse- 
quent rise  of  the  whole  list  Exchequer  ad- 
vanced to  a  good  figure,  and  the  sales  of  this 
stock  for  the  account  of  the  bank,  with  other 
shares  which  had  also  advanced,  placed  so 
[181] 


Anecdotes 


History  of  the  Sanfrandsco 


Anecdotes 


large  an  amount  of  money  to  its  credit  that  it 
was  enabled  to  pay  its  depositors  dollar  for 
dollar. 

57 

The  present  Imperial  Consolidated  Company 
is  a  consolidation  with  the  old  Imperial  and  a 
number  of  Gold  Hill  claims  lying  between  the 
Alpha  and  Challenge.  Many  of  these  com- 
panies had  previously  produced  largely  in  bul- 
lion and  paid  good  dividends.  The  Gold  Hill 
mines,  generally,  at  the  surface,  assayed  higher 
in  gold  than  the  northern  portion  of  the  lode 
at  Virginia  City. 

John  Sime,  William  Bourn  and  others  were 
largely  interested  in  Imperial  before  the  con- 
solidation. 

John  Sime  was  a  native  of  New  Brunswick, 
arriving  in  California  in  the  early  50*8.  He  was 
a  contractor  in  erecting  buildings  in  early 
years.  He  was  about  5  feet  10  inches  tall, 
stout,  and  of  a  very  powerful  frame.  It  is  stated 
that  in  early  years  he  held  a  smaller  man  off 
the  floor  with  one  arm.  In  1856  he  formed  the 
banking  firm  of  John  Sime  &  Co.,  consisting 
of  John  Sime,  Benjamin  Smith  and  Lamar 
Fisher. 

William  Bourn  was  a  capitalist,  real  estate 
holder,  and  1868  found  him  possessed  of  a 
respectable  fortune.  He  was  largely  interested 
[182] 


Stock  andExdiangeBoard 


in  Comstock  mines,  and  aided  in  their  develop- 
ment 

At  a  critical  period  of  the  Imperial  mine,  in 
1868,  Sime,  Bourn,  and  other  directors,  visited 
the  property.  A  drift  was  being  run  on  the 
900  foot  level,  if  I  remember  correctly.  When 
it  struck  the  ledge,  a  heavy  flow  of  water  drove 
out  the  workmen.  Mr.  Sime  was  handed  a 
piece  of  ore,  all  wet,  picked  up  just  as  the  work- 
men escaped.  It  was  high  grade  ore  and  all 
felt  jubilant.  Mr.  Sime,  always  careful,  handed 
it  to  an  expert,  Mr.  J.  B.  Low,  asking  his 
opinion.  The  Comstock  experts  in  those  days 
could  tell  you,  in  a  minute,  from  what  portion 
of  the  lode  any  piece  of  ore  was  extracted,  with 
about  the  same  proficiency  that  San  Francisco 
merchants,  in  early  days,  could  distinguish 
between  Eastern  and  Chile  flour. 

Mr.  Low  examined  the  specimen  in  my 
office  in  Virginia  City,  and  said:  "Mr.  Sime, 
do  they  state  that  this  ore  came  from  the  Im- 
perial drift?"  "Yes,"  was  Mr.  Sime's  answer. 
"Well,"  said  Mr.  Low,  "I  will  stake  my  profes- 
sional existence  on  the  fact  that  this  piece  of 
ore  was  lying  on  the  Kentuck  dump  one  hour 
ago." 

This  information  was  of  some  importance  to 
me,  as  Mr.  Sime  gave  me  a  selling  order  on  a 
number  of  stocks  immediately.   When  the  flow     Anecdotes 
of  water  stopped  and  they  resumed  work  in 
[183] 


History  of  the  Sanfrandsco 


the    drift    the    expected    ore    body    did    not 
materialize. 

The  production  of  Imperial  and  its  other 
claims  foots  up  $28,039,000. 

58 

Challenge  and  Confidence  always  ran  to- 
gether; a  development  in  one  would  extend  to 
the  other. 

We  all  had  faith  that  some  day  these  two 
mines  would  uncover  a  respectable  body  of  ore. 
All  the  Gold  Hill  mines  had  good  gold  ore 
near  the  surface.  Gen.  Robt.  F.  Morrow  had 
charge  of  these  two  mines  for  30  years.  Several 
years  ago  an  ore  body  was  uncovered  in  Confi- 
dence, that  stock  selling  as  high  as  $65 ;  Chal- 
lenge was  marked  up  to  $15. 

59 

Kentuck  is  a  small  mine,  about  95  feet  on 
the  ledge. 

About  1868  the  owners  took  out  large  quan- 
tities of  ore,  and  the  stock  sold  at  $500  a 
share. 

William  Sharon,  Judge  Thomas  Sunder- 
land,  and  others,  benefited  largely  by  this  dis- 
covery. 

A  fire  did  great  damage  on  the  6oo-foot  level 
Anecdotes  in  1869. 

Kentuck  has  produced  $4,905,000. 


Stock  and  Exchange  Board 


60 

Yellow  Jacket  has  always  been  a  popular 
stock. 

John  B.  Winters  was  superintendent  for 
many  years;  also  Captain  Thomas  Taylor. 

In  April,  1869,  a  fire  broke  out  in  Yellow 
Jacket,  Crown  Point  and  Kentuck,  doing  much 
damage,  and  was  still  burning  in  the  Kentuck 
as  late  as  December  of  that  year. 

Col.  William  Sharon,  a  nephew  of  the 
tor,  was  in  charge  for  a  quarter  of  a  century. 

The  production  of  this  mine  is  $18,043,000. 

61 

Crown  Point  and  Belcher — a  splendid  deal. 

The  ore  bodies  discovered  in  these  two  mines 
in  1870  were  the  greatest  as  yet  uncovered,  and 
the  one  big  discovery  since  the  Gould  &  Curry 
development  of  1862. 

Crown  Point  was  controlled  by  Alvinza 
Hayward  and  John  P.  Jones,  the  latter  for 
many  years  United  States  Senator  from 
Nevada. 

Alvinza  Hayward  was  one  of  the  most  im- 
portant of  Comstock  promoters.  He  had  made 
a  large  fortune  in  the  Amador  gold  mine  in 
California,  and  at  the  commencement  of  min- 
ing stock  speculation  was  rated  as  one  of  our 
wealthiest  capitalists.  Anecdotes 

His  six-foot  figure  could  always  be  noticed 
[185] 


flistory  of  the  Sanfrancisco 


Anecdotes 


on  California  street — dressed  in  a  black  suit, 
Prince  Albert  coat,  with  tall  silk  hat,  the  popu- 
lar form  of  a  gentleman's  dress  in  those  days. 

A  stockholder,  and  closely  connected  with 
the  Bank  of  California  at  its  organization,  he 
was  intimately  connected  with  all  the  great 
deals  in  early  days.  On  the  discovery  of  ore 
in  Crown  Point,  his  heavy  purchases  of  this 
stock,  with  his  relative  John  P.  Jones,  gave 
him  the  control,  which  he  held  all  through  the 
period  of  success  of  this  great  mine.  Dif- 
ferences of  opinion  caused  him  to  sever  his 
relations  with  the  bank,  and  he  became  Presi- 
dent of  the  Merchants'  Exchange  Bank,  with 
which  he  was  connected  for  many  years.  He 
outlived  many  of  his  old-time  associates,  pass- 
ing away  within  the  last  few  years  at  his  San 
Mateo  home. 

Senator  John  P.  Jones  at  this  time  was  a 
stout,  tall  gentleman,  with  mustache  and  chin 
whiskers.  As  superintendent  of  the  Crown 
Point  mine,  he  discovered  what  developed  into 
a  great  bonanza,  extending  into  the  Belcher 
mine,  its  southern  neighbor. 

The  Belcher  was  controlled  by  William 
Sharon  and  the  Union  Mill  &  Mining  Com- 
pany, all  connected  with  the  Bank  of  Cali- 
fornia. 

It  was  after  two  years'  work  that  the  stocks 
in  these  mines  reached  their  highest.  Crown 
[186] 


Stock  and  Exchange  Board 


Point  sold  at  $1825.  Belcher  sold  in  the  neigh- 
borhood of  $1400. 

These  stocks  paid  dividends  for  years  and 
were  actively  traded  in,  giving  brokers  large 
commissions.  Large  orders  to  either  buy  or 
sell  these  two  stocks  were  sent  to  the  Board 
every  day  for  months. 

Later,  in  the  Bonanza  deal,  one  broker  was 
short  10,000  Belcher  at  $66  a  share.  The  market 
was  heavy,  looked  as  if  it  would  break  at 
least  $10  a  share,  when  his  profits  would  have 
been  $100,000.  Instead,  the  price  was  put  up  a 
few  dollars.  He  could  not  deliver,  and  we, 
unfortunately,  lost  him  as  a  member,  much  to 
our  discomfiture. 

The  production  of  Crown  Point  is  $33,- 
081,000. 

The  production  of  Belcher  is  $34,415,000. 

62 

Overman  and  Caledonia  always  sympathize 
in  prices ;  a  development  in  one  mine,  and  con- 
sequent advance  in  price,  will  cause  the  other 
stock  to  advance. 

In  1867-1868,  John  Sime  &  Co.  and  their 
friends  controlled  Overman. 

Gen.  Robert  F.  Morrow  soon  obtained  con- 
trol and  has  held  it  for  more  than  30  years. 

It  has  been  well  handled,  and,  in  compari-     Anecdotes 
son  with  other  mines,  the  directors  of  Over- 


History  of  the  Sanfrandsco 


m 

man  have  called  for  a  less  amount  of  money  in 
assessments  levied. 

At  one  time  it  was  thought  that  Overman 
would  uncover  a  large  body  of  ore  and  the 
stock  advanced  to  $125.  This  was  about  1877. 
Unfortunately,  it  was  a  disappointment  and 
the  stocks  broke  badly. 

63 

Caledonia  was  an  active  stock  from  early 
days,  and  has  always  sympathized  with 
Overman. 

64 

As  late  as  1868  it  was  thought  the  southern 
end  of  the  Comstock  Lode  terminated  with 
Belcher.  Those  holding  to  the  view  that  it 
still  continued  south  made  their  locations  ac- 
cordingly. Others  were  positive  that  the  ledge 
split  at  the  Belcher  mine,  and  assumed  a  course 
southwest,  and  that  locality  was  called  Ameri- 
can Flat.  The  Overman  Mining  Company, 
which  eventually  absorbed  the  Uncle  Sam 
mine,  was  located  in  this  direction.  Further 
on  were  the  Baltimore,  American  Flat  and 
many  other  mines,  which  at  times  gained 
celebrity  and  high  prices,  but  no  great  amount 
of  ore  was  ever  found  beyond  the  Overman. 
Anecdotes  The  latter  mine  was  eventually  swung  around 
in  its  location  to  the  south  of  Belcher. 
[188] 


HOTAM38  .8  .U  ,83MOl  . 


man  have  called  for  a  less  amount  of  money  in 
assessments  levied 

At  one  time  it  was  thought  that  Overman 

.'!  uncover  a  large  body  of  ore  and  the 

advanced  to  $125.  This  was  about  1877. 

lunately,  it  was  a  disappointment  and 


. 


. 

As  late  a*  1868  it  was  thought  the  southern 
end  of  the  Comstock  Lode  terminated  with 
Belcher.  Those  holding  to  the  view  that  it 
still  continued  south  made  their  locations  ac- 
cordingly. Others  were  positive  that  the  ledge 
split  at  the  H  assumed  a  course 

and  tr  ^d  Ameri- 


ity  and  higl  >;reat  amount 

e  was  ever  fom  <id  the  Overman. 

The  latter  mine  was  eventually  swung  around 

JOHN   P.  JONES,  U.  S.  SENATOR 


Stock  andExchangeBoard 


65 

The  Alta  mine  is  located  south  of  Caledonia. 
It  has  a  great  history.  Seth  and  Dan  Cook, 
with  the  Derby  brothers,  had  control  at  one 
time,  and  when  an  ore  discovery  was  made 
the  price  advanced,  and  it  was  one  of  the  most 
active  stocks  on  the  list. 

The  Mining  and  Scientific  Press  contains  a 
fine  statement  of  the  accident  at  this  mine  on 
Wednesday,  May  31,  1882,  from  which  I  con- 
dense the  following: 

"At  ii  o'clock  A.  M.  a  portion  of  the  south 
bulkhead,  east  drift,  2150  foot  level,  gave  way. 
Six  men  were  working  in  the  main  west  drift, 
which  was  1400  feet  long.  Richard  Bennett, 
the  shift  boss,  started  out  this  west  drift  to 
notify  the  men,  and  thus,  with  the  others,  be- 
came imprisoned  there,  as  the  bulkhead  gave 
way  with  a  tremendous  rush  of  water.  The 
other  six  men  were  P.  Denney,  T.  McDonald, 
John  Mulligan,  Malachi  Curran,  John  Black, 
Morris  Curran.  This  west  drift  had  a  raise  of 
one  foot  in  each  one  hundred  feet.  Thus,  at  the 
face  it  was  fourteen  feet  higher  than  the  floor 
of  the  station  at  the  shaft.  The  pumps  were 
kept  going  at  a  high  speed,  and  bailing  tanks 
also  aided  in  lowering  the  water,  as  it  was 
above  the  top  of  the  drift  at  the  shaft.  The 
men  commenced  tapping  on  the  air  compressor  Anecdotes 
to  show  they  were  still  alive.  This  continued 
[189] 


History  of  the  Sanfhmcisco 


Anecdotes 


all  Thursday  and  Friday.  Two  men,  George 
Gornest  and  Anthony  Smith,  tried  to  penetrate 
the  drift,  but  were  compelled  to  return.  At 
four  o'clock  Friday  morning  the  water  was  so 
far  lowered  that  William  Bennett,  the  nephew 
of  Richard  Bennett,  the  brave  shift  boss,  and 
Dennis  Calahan  took  two  boats  that  had  been 
lowered  down  the  shaft  and  entered  the  long 
drift,  taking  ice,  water  and  refreshments  with 
them.  It  is  sad  to  relate  that  both  of  these 
brave  men  lost  their  lives  in  the  attempt.  On 
Friday,  June  2d,  at  3  P.  M.,  the  water  at  the 
mouth  of  the  drift  was  so  far  lowered  as  to  be 
only  three  feet  deep.  And  now  appeared  John 
Van  Dusen,  who,  for  his  brave  and  successful 
effort,  has  established  a  name  for  bravery  and 
endurance  to  be  remembered  as  long  as  min- 
ing continues  on  the  Coast.  Volunteering  to 
enter  the  drift,  they  placed  a  mask  over  his 
face,  from  which  there  was  a  rubber  breathing 
tube,  passing  into  a  tin  box  strapped  to  his 
back,  which  box  was  filled  with  fragments  of 
ice,  and  perforated  with  holes  to  allow  of  air 
passing  in  through  the  pounded  ice.  And  thus 
protected,  he  boldly  entered  the  drift.  He  was 
gone  about  half  an  hour,  when  those  at  the 
station  heard  a  call  for  help.  Men  went  in  the 
direction  of  the  cry,  and  100  feet  out  found 
Van  Dusen,  exhausted  and  in  a  fainting  con- 
dition. As  soon  as  he  could  converse,  Van 
[190] 


Stock  and  Exchange  Board 


Dusen  said  he  had  found  the  seven  imprisoned 
men  all  right  and  alive.  They  were  in  the  cool- 
ing room,  100  feet  from  the  face  of  the  drift, 
and  naturally  very  anxious  as  to  their  fate. 
They  had  broken  the  compressed  air  pipe,  and 
had  so  bent  the  end  as  to  carry  it  into  the 
cooling  house.  At  first  they  had  a  barrel  of 
ice  water.  When  this  was  exhausted,  they 
poured  into  the  barrel  hot  water  from  the  drift, 
twisted  the  end  of  the  compressed  air  pipe 
down  into  the  water  barrel,  and  allowed  it  to 
exhaust  there.  This  rendered  the  water  cool 
and  drinkable.  They  had  a  light  in  the  cooling 
house,  but  nothing  to  eat.  The  heat  made  them 
weak  and  feverish.  They  took  some  ice  out  of 
his  tin  box,  and  this  act  nearly  cost  him  his 
life  on  returning.  Van  Dusen  said  he  would 
inform  their  friends  that  they  were  all  right, 
and  assured  them  of  the  great  efforts  being 
made  for  their  rescue.  As  his  ice  was  disap- 
pearing, he  started  back,  and  was  brought  out 
as  related  before.  At  7  o'clock  that  evening 
six  more  men  waded  forward  through  the 
water,  carrying  restoratives,  but  on  arriving  at 
the  cooling  house,  were  in  a  worse  condition 
than  the  imprisoned  men.  Work  was  being 
pushed  at  the  shaft,  until  a  current  finally 
came  through  the  blower,  driving  out  all  the 
foul  air.  More  men  visited  the  imprisoned 
miners,  and,  finally,  when  their  strength  was 


Anecdotes 


History  of  the  Sanfhmdsco 


Anecdotes 


sufficiently   restored,   they   were   all   brought 
safely  to  the  shaft  and  to  the  surface." 

The  Stock  Board  presented  Mr.  Van  Dusen 
with  a  gold  medal  with  this  inscription: 
"Greater  love  hath  no  man  than  this,  that  a 
man  lay  down  his  life  for  his  friends." 

The  death  of  Dennis  Calahan  was  greatly 
deplored.  He  had  a  little  niece  dependent  upon 
him.  Mr.  E.  S.  Spring,  who  has  reported  the 
Board  transactions  for  San  Francisco  papers 
for  the  last  35  years,  was  so  much  affected  by 
this  fact  that  he  telegraphed  Dan  De  Quille, 
of  the  Virginia  City  Enterprise,  stating  that  if 
he  could  send  down  that  tin  box,  used  by  Van 
Dusen,  he  would  have  it  filled  with  coin  for 
Calahan's  niece.  The  intense  feeling  mani- 
fested, not  only  in  mining  circles,  but  all 
through  San  Francisco,  fully  warranted  this 
statement  of  Mr.  Spring. 

The  tin  box  was  accordingly  sent  to  Mr. 
Spring,  who  devoted  a  day  or  so  to  fulfilling 
his  commendable  promise.  He  was  so  enthu- 
siastic in  describing  the  entire  incident,  that  all 
partook  of  his  charitable  feeling,  and  he  quickly 
returned  the  tin  box  to  Virginia  City,  filled  to 
the  brim  with  gold  and  silver  coins. 

The  Alta  has  been  under  the  management 
of  Mr.  John  Landers  for  a  quarter  of  a  cen- 
tury. This  mine  has  a  large  body  of  low  grade 
ore  below  the  water  level.  The  Alta  holds  the 
[  192] 


WOHHOM  .•?  TJiaaoa 


SatiFirmcisco 


/   restored,  they  were  all   br 
y  to  the  shaft  and  to  the  surface." 
The  Stock  Board  presented  Mr.  Van  Dusen 
with    a    gold    medal    with    this    inscription: 
"Greater  love  hath  no  man  than  this,  that  a 
man  lay  down  his  life  for  his  friends." 

Tht  )ennis  Calahan  was  greatly 

deplored.  snt  upon 

him.   Mr. 


rouiu  nave  it  ruica  wren  coin  xor 


Calahan's  niece.    The   intense  feeling  mani- 
fested,  not   only   in   mining   circles,   but   all 
through  San  Francisco,  fully  warranted  this 
statement  of  Mr.  Spring. 
The  tin  box  was  accordingly  sent  to  Mr. 

so  to  fulfilling 
was  so  enthu- 


The  Aita  1  :he  management 

of  Mr.  John  Landers  for  &  quarter  of  a  cen- 
tury. This  mine  has  a  large  body  of  low  grade 

ROBERT    F.  MORROW 


Stock  andExchangeBoard 


key  to  the  water  problem,  affecting  those 
mines  at  Gold  Hill  and  below.  Should  this 
mine,  with  the  joint  assistance  of  the  other 
Gold  Hill  mines,  follow  the  example  of  the 
north  end  mines,  erect  a  pump,  exhaust  the 
water  and  sink  for  lower  levels,  it  would  have 
a  great  effect  in  aiding  a  revival  of  the  Corn- 
stock  mines.  This  plan,  however,  is  now  under 
discussion. 

66 

The  Eureka  and  the  Jackson  mines  in 
Eureka  District,  Nevada,  gave  us  large  com- 
missions. 

The  Eureka  and  the  adjoining  mine,  the 
Richmond,  were  in  continual  litigation.  The 
Eureka  paid  handsome  dividends  for  years. 
John  W.  Shaw  at  one  time  controlled  this 
mine,  his  brother,  William  Shaw,  being  the 
superintendent  of  the  Eureka  and  Jackson 
also. 

About  1875  and  1876  Dr.  Zeile  became 
largely  interested  in  the  Eureka,  and  was  its 
principal  stockholder  and  director,  making  a 
large  fortune,  especially  in  the  dividends  paid 
by  this  mine. 

The  Eureka  and  the  Richmond  eventually 
consolidated,  and  the  stock  is  still  listed  on 
the  Board.  Anecdotes 

The  Jackson  produced  considerable  ore,  and 
[i93] 


[History  of  the  Sanfraneisco 


Anecdotes 


for  years  past  has  been  worked  principally  by 
lessees. 

67 

The  firm  of  McDonald  &  Whitney  was  a 
great  power  in  the  Board  for  many  years.  Mc- 
Donald became  a  member  in  July,  1864,  pur- 
chasing his  seat  from  H.  Camp  for  $1400.  His 
history  shows  the  possibilities  in  the  early 
years  of  the  Board.  He  was  then  31  years  of 
age.  On  arriving  from  the  interior  all  his 
possessions  amounted  to  $2700,  of  which  $1400 
was  expended  in  purchasing  a  seat.  He  early 
developed  a  genius  for  the  stock  business  and 
soon  attained  a  good  following.  When  the 
London  &  San  Francisco  Bank  was  opened, 
with  Gov.  Milton  S.  Latham  as  manager,  on 
August  i,  1865,  McDonald  obtained  a  credit  at 
the  bank,  and,  as  he  was  energetic  and  active, 
attending  closely  to  business,  he  was  success- 
ful almost  from  the  beginning.  His  firm  soon 
gained  control  of  a  number  of  mines,  among 
them  being  the  Sierra  Nevada  and  Kentuck. 
With  Dr.  Bradford,  Jack  Mahoney,  B.  F.  Sher- 
wood and  Joseph  H.  Jones,  he  spent  the  sum- 
mer of  1875  at  Saratoga  in  New  York.  He  was 
mentioned  in  the  newspapers  at  Saratoga  as 
being  the  owner  of  large  silver  mines  in  Ne- 
vada, and  was  credited  as  being  worth 
$30,000,000.  On  his  return,  McDonald  became 
convinced  prices  were  too  high,  consequently 


.AOOTAHA8     ,3OATTOO      g'dJAMOdDM      TA 

Hiaaoi  .aJAwociDM  .j  .M  .e^st  txHOY  wan 

-AM  .H  .1  ^HO^QAHS  .H  .o  .aa  .aawot  .H 

aoownaHg  .^  .a 


nclsco        |y 


-ars  past  has  been  worked  principal 

, 

The  firm  of  McDonald  &  Whitney  was  a 
great  power  in  the  Board  for  many  years.  Mc- 
Donald became  a  member  in  July,  1864,  pur- 

or  $1400.   His 


soon  .virtg.    When  the 

London  &  San  .  •>  Bank  was  opened, 

with  Gov.  Milton  S.  Latham  as  manager,  on 
August  i,  1865,  McDonald  obtained  a  credit  at 
the  bank,  and,  as  he  was  energetic  and  active, 
attending  closely  to  business,  he  was  su 

ining.   His  firm  soon 


eng  te  ov/\  -s  in  Ne- 

vada,   and    w^s  ..-is    being    worth 

00,000.   On  i,  McDonald  became 

AT  MCDONALD'S  COTTAGE,  SARATOGA, 
NEW  YORK,  1875.  M.  L.  McDONALD,  JOSEPH 
H.  JONES,  DR.  C.  H.  BRADFORD,  J.  H.  MA- 
HONEY,  B.  F.  SHERWOOD 


_ 

00 
Z  W 

>  m 

r  TI 
o  x 


ll 


pi 

m 
•n  -< 


Stock  and Exchange Board 


getting  on  the  short  side  of  the  market.  For 
years  he  was  known  as  the  Ursa  Major  of  the 
Board,  acting  on  the  principle  that  "what  goes 
up  must  come  down."  While  others  were  losing 
money,  things  were  running  his  way,  until,  in 
1879,  he  retired  with,  as  was  thought,  about 
$500,000.  He  was  a  candidate  for  United 
States  Senator  at  one  time.  He  has  lived  in 
Santa  Rosa  for  the  last  thirty  years. 


68 

Charles  N.  Felton  joined  the  Board  between 
August  6th  and  December  sist,  1864.    He  had 
been  active  in  business  circles  in  San  Fran- 
cisco.    He  was  of  small  stature,  never  very        , 
stout,  active  and  extremely  energetic. 

He  filled  with  great  credit  the  positions  of 
Assistant  United  States  Treasurer  at  San  Fran- 
cisco, Congressman  and  United  States  Sena- 
tor from  California.  These  positions  prevented 
him  from  ever  becoming  a  very  active  member. 
He  has  the  credit  of  assisting  James  R.  Keene 
on  the  road  to  fortune,  as  he  loaned  him  the 
seat  in  the  Board  from  which  Keene  derived 
so  great  a  fortune.  This  occurred  in  1869,  and 
Senator  Felton  was  out  of  the  Board  for  a 
number  of  years.  One  of  twenty,  he  again  re- 
purchased in  June,  1875,  paying  $25,000  for 
the  seat,  and  finally  left  the  Board  in  1880  with  Anecdotes 
a  large  fortune. 

[195] 


History  of  the  SanRvneisco 


He  was  small  in  stature;  liberal  and 
generous.  He  was  of  a  fine  business  character 
and  had  the  confidence  of  a  number  of  the 
largest  capitalists  in  San  Francisco. 

He  formed  a  co-partnership  with  S.  B.  Bos- 
well  at  one  time,  and  finally,  in  1873,  with 
James  R.  Keene. 

He  called  the  attention  of  the  president  to 
the  need  of  ice  water  on  hot  days.  The  presi- 
dent said:  "Why  don't  you  buy  us  a  pitcher?" 
The  next  day  a  magnificent  silver  pitcher  was 
placed  on  a  stand  near  the  rostrum,  a  present 
from  Mr.  Hall.  Again  he  approached  the  presi- 
dent with:  "Why  don't  you  have  a  decent 
clock  in  the  Board?"  The  rejoinder:  "Why 
don't  you  buy  us  one?"  In  a  few  days  a  fine 
$200  clock,  six  feet  high,  adorned  the  wall 
back  of  the  chairman.  We  understood  it  was 
a  present  from  Mr.  Hall. 


Anecdotes 


70 

Great  interest  was  centered  on  General 
Grant  when  he  visited  the  Board,  August  28, 
1879.  He  was  the  great  General  of  the  Civil 
War,  had  served  two  terms  as  President,  left 
New  York,  visiting  Europe  and  Asia,  had  been 
received  and  treated  royally  by  all  countries 

' 


Stock  andExchangeBoard 


and  rulers,  and  now  had  returned  to  his  coun- 
try. The  booming  of  cannon  announced  his 
entry  through  the  Golden  Gate,  and  all  San 
Francisco  was  delighted  with  his  visit.  There 
were  about  a  half  dozen  in  his  party  when  he 
visited  the  Board,  and  the  galleries  were 
crowded  with  the  wives,  daughters  and  friends 
of  the  members.  Our  president,  Mr.  E.  P.  Peck- 
ham,  did  the  honors,  standing  to  the  left  of 
General  Grant.  Stopping  about  half  way  to  the 
rostrum,  he  introduced  the  illustrious  visitor. 
We  saw  before  us  a  stout,  broad-shouldered 
gentleman,  who  accepted  our  applause  in  a 
modest  manner.  He  was  taken  to  the  right  of 
the  rostrum,  where  chairs  had  been  placed  for 
the  visitors,  and  introduced  to  Chairman  Coit, 
who  descended  from  the  rostrum  to  meet  the 
General.  The  party  was  seated  and  we  con- 
tinued our  transactions.  The  visit  lasted  half 
an  hour,  all  the  members  standing  at  their 
seats  as  the  visitors  retired. 

General  Sheridan,  Mr.  and  Mrs.  Frank  Les- 
lie, King  Kalakaua  and  Emperor  Don  Pedro 
were  also  among  our  visitors. 


A  healthy  stock  market,  one  founded  upon 
a  discovery  of  rich  ore,  has  always  proved  of 
great  advantage  to   San   Francisco.    With  a     Anecdotes 
rise  in  value,  a  small  owner  of  stock  purchased 


History  of  the,  Sanfrandsco 


Anecdotes 


at  low  figures  becomes  comparatively  wealthy. 
Experience  shows  that,  as  a  rule,  a  man 
struggling  with  debt  on  his  shoulders,  should 
he  be  one  of  the  fortunate  owners  of  a  mine, 
where  rich  ore  has  been  found,  will  sell  at 
about  the  time  when  his  profits  will  pay  all 
of  his  debts.  And  debts  of,  say  $10,000,  paid 
in  this  way,  may  pass  through  the  hands  of  a 
hundred  other  people,  each  one  paying  some 
long  neglected  obligation.  This,  in  a  way, 
means  prosperity  to  a  community;  money, 
placed  in  circulation  in  this  manner  by,  say 
twenty  previously  insolvent  men,  always  does 
an  immense  amount  of  good,  taking  the  stag- 
nation out  of  a  previously  dull  period. 

72 

Ehrlich,  Mark  Livingston  and  others,  large 
holders  of  Chollar,  determined  one  day  to 
raise  the  stock  from  $95  to  over  $100.  The 
order  was  given  to  Keene.  Carefully  buying 
everything  at  first  "buyer  five,"  and  then  regu- 
lar way,  Keene  bought  all  stock  on  the  floor 
at  $95,  $96,  $97,  $98  and  $99.  There  was  quite 
a  quantity  offered  at  $100.  He  purchased  care- 
fully, feeling  his  way,  and  when,  finally  pur- 
chasing all  of  the  $100  stock,  he  bid  regular 
way  for  100,  200,  500  shares,  and  then  bid  $100 
a  share  for  any  part  of  1000  shares,  the  audi- 
ence rose,  cheering  lustily. 


Stock  and  Exchange  Board 


73 

A.  J.  Pope  had  a  wad  of  California,  Consoli- 
dated Virginia  and  Ophir  shares,  held  them  for 
high  prices,  and  finally  sold  them,  making 
more  than  $1,000,000  profits. 

L.  P.  Drexler  made  a  large  fortune  by  sell- 
ing these  stocks  at  high  prices. 

C.  W.  Kellogg  was  a  prominent  figure  for 
years  in  mining  matters.  He  controlled  the 
Julia  Mining  Company  and  other  listed  stocks, 
and  amassed  quite  a  fortune  in  Bonanza  days. 


74 

In  the  great  whirl  of  excitement  in  the  Board 
at  the  close  of  the  year  1874,  both  California 
and  Consolidated  Virginia  made  the  remark- 
able advance  in  price  of  $500  each  in  less  than 
thirty  days. 

I  had  purchased  some  California  stock  at 
$240  a  share,  "buyer  thirty,"  had  signed  the 
usual  contract,  paid  the  deposit  required  by 
the  seller,  and,  as  the  stock  had  advanced,  and 
there  was  no  danger  of  a  loss,  I  paid  little  at- 
tention to  it.  One  day,  needing  more  money 
than  stood  to  my  credit  at  the  bank,  on  looking 
at  the  contract,  ascertained  that  the  stock,  then 
selling  at  $750  a  share,  had  advanced  $500  in 
less  than  thirty  days,  and  I  sold  the  stock  that 
day  at  the  high  price  mentioned — $750  a  share.  Anecdotes 

Following  are  the  prices  for  a  few  weeks: 


.History  of  the  Sanfrancisco 


California 
Con.  Va.  . 


570 

118       100       113       182  195 

1875 

Jan.  Jan.  Jan.  Jan.  Feb.  Feb.  Feb.  Feb. 

7       14     21      28       4        11       18  25 

790    590    ...     420      57       54      50  55 

710    595    .         525    415     450    433  440 


Ophir 315     183233     116      89       70      74       77 


The  capital  stock  of  California,  108,000,  was 
increased  to  540,000  (5  for  i)  Feb  4,  1875. 

The  capital  stock  of  the  Consolidated  Vir- 
ginia of  108,000  shares  was  increased  5  for  i, 
equalling  540,000  shares,  on  Friday,  March  17, 
1876,  one  year  and  a  month  after  the  increase 
in  California,  Fluctuations  for  a  few  months 
in  this  issue  follow: 


Anecdotes 


California 
Con    Va 

Mch. 
4 
...     60 
445 

75 
1875 
Mch.    Mch.    Apr.    May    June 
11         18          1           6           3 
67         55         66      627/8         60 
460       410        421 

Ophir 

83 

116         93       103      84}^         61 

California 
Con.  Va 

Jul. 
1 
....  55 
320 

Aug.         Aug.            Aug.      Oct. 
5               25                 26             6 
76        60  to  56            56.5           60 
360      290  to  263    250  to  267    305 

Oohir  , 

45 

76            54           43  and  55      65 

[  200  ] 


Stock  and  Exchange  Board 


No  session  was  held  between  Aug.  26  and 
Oct.  5,  1875,  a  six-weeks'  recess,  the  longest 
in  the  history  of  the  Board.  Prices  on  Oct.  6 
show  a  rise  in  values. 

The  sales  of  record  of  Aug.  26,  1875,  as 
taken  from  the  Mining  and  Scientific  Press,  do 
not  seem  to  be  large.  Business  was  continued 
after  the  Board  with  lower  prices.  Following 
are  the  sales  for  that  date: 


225  Alpha  ...........  17 

1850  Belcher  .........  18  20 

2280  Best  &  Belcher..  41^  45 

170  Bullion    .........  38^  39 

160  Buckeye  .............         75  cts. 

220  Chollar   .........  69  72 

3100  Crown  Point  ____  22  23% 

670  Confidence  ......  17 

7325  California  .......  56^  .  . 

500  Con.  Virginia  ...  250  267^ 

1315  Gould  &  Curry.  .  17  18 

340  Hale  &  Norcross.  35  40 

1710  Imperial  ........  S% 

575  Justice  ..........  20  24 

75  Julia  ............  17  18 

200  Kentuck   ........  13 

800  Lady  Bryan  .....  1%        l*/8 

2830  Mexican   ........  18  19 

3870  Ophir    ..........  43  55 

1090  Overman    .......  40  45 

375  Savage    .........  81  86 

665  Sierra  Nevada   ..  14J4  15 

275  Union    ..........  7  75/8  Anecdotes 

740  Yellow  Jacket...  63  65 
[201  ] 


History  of  the  Sanfrandsco 


Prices  after  n  o'clock  session: 

Ophir    36 

California    48    50 

Con.  Va 240 

Chollar 60 

Gould  &  Curry  17 

Overman   40 

Another  comparison  of  prices  is  here  given: 

1875 

Nov.  Dec.  Dec. 

4  2  30 

California    54  21  76% 

Con.  Virginia  254  385  411 

Ophir    39  58  50 

1876 

Jan.   Feb.  Mch.   Mch.  Dec. 

29        24  16        23  28 

California    87        90  89        88  45 

Con.   Virginia    448      440  430        86  38 

Ophir    63        66  64        65  23 


The  Mining  and  Scientific  Press  also  con- 
tained the  following  item  on  March  4,  1876, 
relating  to  a  Government  purchase  of  silver. 

"During  the  past  week  the  Government 
bought  300,000  ounces  of  fine  silver  at  $1.16 
per  ounce  ,the  seller  paying  the  parting  charge 
of  2^2  per  cent,  which  makes  the  price  of  silver 
about  $1.1333  Per  ounce,  the  lowest  price  ever 
Anecdotes  paid  for  fine  silver  (up  to  that  date). 

"The  standard  value  is  $1.2929." 
[  202  ] 


Stock  and  Exchange  Board 


All  sales  of  shares  of  stock  between  mem- 
bers are  considered  absolute  contracts.  From 
the  earliest  history  of  the  Board  every  care  has 
been  taken  to  make  transactions  binding.  An 
assistant  secretary  is  placed  at  the  rostrum, 
who  records  each  contract,  with  the  name  of 
the  seller  and  buyer,  the  number  of  shares  and 
price,  and  time,  if  any. 

The  names  only  of  members  present  during 
the  session  are  permitted  to  go  on  record.  A 
sale  may  be  "cash,"  deliverable  that  day;  it 
may  be  "regular  way,"  deliverable  the  next 
day.  It  may  be  "seller  ninety,"  of  such  a  nature 
that  the  seller  has  anywhere  from  two  to  ninety 
days  in  which  to  deliver;  or  it  may  be  "buyer 
ninety,"  where  the  buyer  may  call  for  it  any 
time  up  to  ninety  days  from  the  time  of  pur- 
chase. 

When  a  broker,  by  his  genius,  his  sagacity 
and  his  forethought  has  so  well  established 
himself  in  business  as  to  receive  orders  to  buy 
and  sell  shares  in  the  same  stock,  at  any  one 
session,  should  he  place  a  contract  upon  record, 
with  another  broker,  consisting  of  an  equal 
number  of  shares  his  buying  and  selling  orders 
will  permit,  such  a  contract  is  termed  an  "ac- 
commodation" sale.  In  the  hurry  connected 
with  the  great  business  of  1875,  when  it  was  Anecdotes 
impossible  to  consult  with  clients  to  gain  their 
[203] 


History  of  the  Sanfhmcisco 


Anecdotes 


consent,  such  transactions  were  made  absolute, 
the  brokers  exchanging  checks  and  stocks. 

All  members  are  placed  upon  their  honor  in 
answering  questions  propounded  by  the  pre- 
siding officer.  When  asked  if  any  contract  on 
record  is  a  "sale,"  it  is  understood  their  answer 
must  be  that  they  are  either  the  party  of  the 
first  part  or  the  party  of  the  second  part;  and 
in  case  they  are  interested  both  ways  they 
must  so  state.  An  "accommodation"  sale,  as 
described  above,  can  be  removed  from  the 
record  if  objection  is  made  by  another  member. 
The  record  must  be  absolutely  lived  up  to  by 
all  members. 

In  1872  Mr.  James  H.  Latham,  doing  a  very 
large  business,  had  not  as  yet  become  a  mem- 
ber. His  orders  were  executed  by  a  member. 
Receiving  some  very  large  orders  one  session, 
this  member  made  "accommodation"  sales  to 
quite  an  extent  with  other  members,  placing 
them  all  on  record  and  reporting  them  at 
Latham's  office.  Unfortunately,  the  next  day 
this  member  could  not  meet  his  engagements, 
failed  and  never  re-entered  the  Board. 

So  strictly  were  our  contracts  enforced  that 
each  party  to  these  "accommodation"  sales  was 
forced  to  complete  the  contracts  with  Mr. 
Latham,  and  to  look  to  the  insolvent  member 
for  reimbursement. 

We  understood  that  in  the  great  New  York 
[204] 


Stock  andExchangeBoard 


Stock  Exchange  no  "accommodation"  sales 
are  allowed.  Each  order  to  buy  and  sell  must 
be  executed  with  another  broker  in  good  faith. 

Fictitious  sales  are  prohibited  by  the  laws  of 
the  Board.  In  the  first  Constitution  and  By- 
Laws  adopted  in  1862  stringent  rules  were 
formed  forbidding  fictitious  sales,  and  in  sub- 
sequent years  the  Legislature  of  California 
passed  laws  forbidding  the  same. 

When  a  member  makes  the  highest  bid  for  a 
stock,  he  is  entitled  to  all  purchases  at  the 
quantity  and  price  he  has  fixed,  as  long  as  he 
bids.  In  selling,  when  he  offers  the  stock 
lower  than  others,  he  is  entitled  to  the  sales 
made  in  the  quantity  and  at  the  price  he  has 
settled,  as  long  as  he  offers  the  stock. 

77 

Don't  know  where  this  story  originated,  but 
it  is  applicable  to  our  business  more  than  to 
any  other. 

A  young  operator,  constantly  plunging,  was 
often  a  loser.   He  would  apply  to  a  rich  uncle, 
with  whom  he  was  a  favorite,  to  help  him  out 
at  times.     On  one  of  many  visits  his  uncle 
turned  to  him  and  said:  "I  suppose  you  think 
you  are  a  Napoleon  of  finance."    "Uncle  Will," 
was  the  answer,  "Napoleon  wasn't  in  it  with 
me.     He  only  had  one  Waterloo,  and  I  have     Anecdotes 
one  almost  every  day  of  my  life." 
[205] 


History  of  the  Sanfrandsco 


Anecdotes 


78 

J.  R.  Fitch  was  one  of  the  best  brokers  in 
the  Board.  He  was  born  in  Canada,  arriving  in 
San  Francisco  early  in  his  career,  joining  the 
Board  in  1865.  He  was  rather  stout,  with  long, 
black,  curly  hair,  modest,  and  of  a  retiring 
disposition,  except  when  his  orders  on  stock 
compelled  him  to  make  himself  heard. 

While  connected  with  the  firm  of  Fitch  & 
De  Long,  his  principal  customer  was  Erwin 
Davis,  at  that  time  a  very  prominent  operator. 

When  Thomas  Fenn,  doing  business  for 
James  H.  Latham,  left  the  Board  in  1872,  Mr. 
Latham  secured  the  services  of  Mr.  Fitch,  who 
continued  for  years  as  the  broker  for  his  firm, 
and  its  successors.  His  orders  during  the  great 
market  of  1875  were  very  large.  It  is  stated 
that  his  commissions  as  broker's  broker  for  one 
month,  at  an  eighth  of  one  per  cent,  amounted 
to  $8,000. 

79 

Col.  P.  C.  Hyman  is  the  last  survivor  of  the 
original  40  charter  members.  He  is  living  at 
Elko,  Nevada,  having  mining  interests  in  that 
locality.  He  is  a  pioneer  of  California,  arriv- 
ing here  in  December,  1849. 

He  sold  his  seat  in  1870  to  E.  J.  de  Santa 
Marina,  the  latter  re-entering  the  Board.  Mr. 
Hyman  is  a  six-footer,  with  an  iron  constitu- 
[206] 


T2HA3H    .O3O 


fc  Fitch  was  one  of  the  best  brokers  in 
the  Board.  He  was  born  in  Canada,  arriving  in 
San  Francisco  early  in  his  career,  joining  the 
Board  in  1865.  He  was  rather  stout,  with  long, 


years  as  the  broker  for  his  firm, 
and  its  successors.  His  orders  during  the  great 
market  of  1875  were  very  large.  It  is  stated 
that  his  commissions  as  broker's  broker  for  one 
month,  at  an  eighth  of  one  per  cent,  amounted 


ing  here  in  I 

He  sold  his  se  j  E.  J.  de  Santa 

GEO.    HEARST 
six-footer,  with  an  iron  constitu- 

[306] 


Stock  and  Exchame  Board 


tion,  and,  at  his  present  age,  past  80,  possesses 
a  most  remarkable  memory  as  to  early  inci- 
dents in  San  Francisco. 

80 

A.  G.  Kinsey  at  one  period  amassed  a  large 
fortune  in  the  Bonanza  stocks.  On  retiring, 
in  1877,  his  seat  was  sold  at  the  highest  figure, 
$40,000. 

81 

Franklin  Lawton,  the  first  secretary,  as  he 
was  always  called,  prided  himself  upon  his  per- 
sonal appearance,  and  was  always  tidy  and 
well  dressed.  A  cigar-holder,  colored  a  jet  black 
from  years  of  constant  use,  was  another  par- 
ticular pride. 

82 

J.  W.  Brown,  as  a  telegraph  operator,  was 
one  of  the  earliest  to  understand  a  message  by 
the  ear.  His  stock  operations  quickly  made 
him  rich,  and  in  1873  he  purchased  the  seat  of 
Louis  Sloss,  and  became  a  very  active  trader. 

Mr.  Brown  was  intimate  with  the  Bonanza 
firm,  and  his  orders  on  the  floor  of  the  Board 
were  at  times  quite  large.   As  a  companion  he 
was  very  agreeable,  genial  and  attractive,  but 
showed  best  as  a  host  at  his  dinner  table  with     Anecdotes 
his  family  gathered  around  him. 
[207] 


History  of  the  Sanftaneisco 


Anecdotes 


83 

Walter  Turnbull  was  another  broker  with  a 
good  following.  He  was  a  Colonel  in  the  Cali- 
fornia Militia  and  was  promoted  to  Major 
General  of  the  State  Militia  by  Governor 
Stoneman. 

The  office  of  assistant  chairman  was  tem- 
porarily created  October  2,  1878,  and  Colonel 
Turnbull  was  elected  to  fill  this  position  at 
$500  a  month. 

84 

William  Sharon.  Mr.  Sharon's  name  will  be 
found  in  the  old  directories  as  a  broker  before 
the  organization  of  the  Board.  He  became  a 
member  about  October,  1863. 

He  was  further  advanced  in  years  than  the 
majority  of  the  members.  A  certain  Dr.  Osier 
has  ventured  the  remark  that  Go-year-old  men 
should  be  chloroformed,  the  inference  being 
that  at  that  age  their  usefulness  has  disap- 
peared. Had  the  celebrated  doctor  lived  in  San 
Francisco  and  witnessed  the  operations  of  Mr. 
Sharon  and  others  who  had  passed  this  time 
mark,  this  sweeping  observation  would  not 
have  been  made.  Mr.  Sharon's  greatest  suc- 
cesses came  to  him  late  in  life. 

Small  of  stature,  gray  hair  and  gray  mus- 
tache, and  with  coal  black  eyes,  he  was  a  well 
known  figure  in  San  Francisco. 


HOTAM38  .8   .U  tWOHAH8  MAIJJIW 


anfhmcisco 


83 

Walter  Turnbull  was  another  broker  with  a 
good  following.  He  was  a  Colonel  in  the  Cali- 
fornia Militia  and  was  promoted  to  Major 
General  of  the  State  Militia  by  Governor 
Stoneman. 

The  of  an  was  tem- 

poral 


found  in  the  Broker  before 

the  organization  of  the  Board.    He  became  a 
member  about  October,  1863. 

He  was  further  advanced  in  years  than  the 

majority  of  the  members.   A  certain  Dr.  Osier 

has  ventured  the  remark  that  6o-year-old  men 

^ed,  the  inference  being 


.totes 


mark,   this  swe 

have  b< 

cesses  came  to  in  life. 

Small  of  stature,  gray  hair  and  gray  mus- 
tache, and  with  coal  black  eyes,  he  was  a  well 

WILLIAM  SHARON,  U.  S.  SENATOR 


Stock  and  Exchange  Board 


He  early  had  the  confidence  of  Mr.  Ralston 
of  the  Bank  of  California.  The  banking  house 
of  Stateler  &  Arrington,  located  in  Virginia 
City,  Nevada,  on  C  street,  between  Union  and 
Sutton  avenues,  was  the  correspondent  of  the 
Bank  of  California.  It  suspended  in  1864. 

In  the  fall  of  that  year  William  Sharon  went 
to  Virginia  City  to  establish  the  Agency  of  the 
Bank  of  California,  with  Mr.  J.  A.  Ralston  as 
cashier.  They  opened  in  the  office  formerly 
occupied  by  the  banking  house  of  Arnold  & 
Blauvelt,  corner  of  C  and  Taylor  streets.  The 
other  banks  there  at  that  time  were  Wells, 
Fargo  &  Co.,  with  James  H.  Latham  as  agent 
and  Homer  S.  King  as  cashier;  Paxton  & 
Thornburgh;  Ruhling  &  Co.,  and  B.  F.  Hast- 
ings &  Co.,  A.  K.  Grim  being  the  resident  part- 
ner. I  was  then  a  clerk  with  this  latter  banking 
house.  We  were  all  charging  3  per  cent  a 
month  on  over-drafts. 

The  advent  of  Mr.  Sharon,  with  the  large 
capital  of  the  Bank  of  California  back  of  him, 
reduced  the  rate  of  interest  to  i%  per  cent.  All 
the  mill  men  owed  the  banks  money,  and  they 
found  it  to  their  advantage  to  change  their 
accounts  from  the  different  banks  to  the  new 
agency,  with  the  new  low  rate  of  interest.  In 
course  of  time,  a  large  number  of  the  mills 
became  the  property  of  the  agency,  and  this 
was  the  foundation  of  the  Union  Mill  and  Min- 
[209] 


Anecdotes 


History  of  the  Sanfhmcisco 


Anecdotes 


ing  Company.  By  getting  control  of  the  mines 
these  mills  were  soon  all  crushing  ore,  and 
rapidly  paid  for  themselves. 

Mr.  Sharon's  genius  soon  made  him  quite 
wealthy,  and,  finally  quitting  Virginia  City  and 
becoming  associated  with  the  parent  bank  in 
San  Francisco,  his  wealth  increased.  The  dis- 
covery of  ore  in  Belcher,  with  its  consequent 
dividends,  added  to  his  wealth.  In  connection 
with  Mr.  Ralston,  they  planned  and  built  the 
Palace  Hotel,  which  gained  a  world-wide  repu- 
tation. Mr.  Sharon  again  joined  the  Board  on 
June  12,  1875,  being  one  of  the  twenty  new 
members,  each  paying  $25,000  for  his  seat. 

Mr.  Sharon  was  very  prominent  in  rehabili- 
tating the  Bank  of  California.  About  1875  he 
was  elected  United  States  Senator  from  Ne- 
vada. He  was  for  many  years  the  leading 
manipulator  in  mining  stocks  listed  on  the 
Board. 

85 

Mr.  Robert  F.  Morrow  is  one  of  the  few  sur- 
vivors of  the  early  superintendents  who  de- 
veloped the  Comstock  Lode. 

Of  medium  stature,  well-knit  frame,  strong 
constitution,  he  has  been  well  known  in  min- 
ing circles  in  California  and  Nevada  for  fifty 
years. 

He  arrived  in  Virginia  City  in  1859  to  ta^e 
charge  of  the  Savage  mine,  then  in  litigation, 
[210] 


Stock  and  Exchange  Board 


settling  the  matter  satisfactorily,  and  develop- 
ing the  first  ore  body  in  Savage,  by  drifting  in 
from  the  Gould  &  Curry  mine.  He  sent  for 
William  M.  Stewart,  a  fellow  townsman  in 
California,  giving  that  eminent  lawyer  his  first 
legal  business  in  Virginia  City.  Mr.  Stewart 
attained  an  extensive  legal  practice  in  Virginia 
City,  and  was  afterwards  elected  United  States 
Senator,  serving  as  such  for  over  thirty  years. 

After  a  few  years  Morrow  returned  to  Cali- 
fornia, residing  permanently  in  San  Francisco, 
and  has  always  been  a  prominent  operator  in 
the  Board.  For  years  he  was  permitted  to  sit 
on  a  small  stool,  placed  in  the  aisle  by  the  side 
of  the  desk  of  his  broker,  George  W.  Smiley. 
He  showed  no  disposition  to  force  himself  upon 
the  Board  as  a  member,  but  when  we  needed 
money  to  erect  that  magnificent  Board  build- 
ing on  Pine  street  in  1875,  he  was  among  the 
first  to  advance  the  purchase  price  of  $25,000 
placed  on  the  seats,  was  elected  June  12,  1875, 
with  ten  other  applicants,  and  has  ever  since 
been  a  daily  attendant. 

Mr.  Morrow  was  closely  connected  with  the 
Bank  of  California  in  1875,  and  is  one  of  the 
few  survivors  of  what  was  known  as  the  "bank 
crowd."  Mr.  William  Sharon  had  absolute  con- 
fidence in  Mr.  Morrow,  and  they  were  closely 
connected  in  business  matters  up  to  the  time  Anecdotes 
of  the  death  of  Mr.  Sharon. 

[211] 


.History  of  the  Sanfrancisco 


Anecdotes 


86  1 

Flood  &  O'Brien — the  wealthiest,  the  most 
successful,  the  firm  longest  in  power  of  all  the  C 
operators  and  manipulators.  < 

They  had  to  commence  at  the  bottom  of  the 
ladder,  in  a  manner  similar  to  that  of  other 
operators.  They  were  successful  from  the  be- 
ginning and  were  known  in  the  Board  from  its 
organization.  Mr.  James  C.  Flood  was  the 
active  business  man  of  the  firm,  and  the  street 
soon  recognized  him  as  one  of  the  most  astute 
operators,  of  good  judgment  and  discretion, 
and  possessing  one  of  the  best  business  minds 
in  San  Francisco. 

He  was  stout  of  figure,  of  medium  height, 
his  sandy  hair  turning  gray,  pleasant  and 
earnest  in  conversation. 

William  S.  O'Brien  was  not  quite  as  tall  as 
his  partner;  his  black  hair  was  turning  gray; 
he  was  always  pleasant  and  agreeable. 

James  G.  Fair,  with  full  grayish  beard,  splen- 
did physique,  thick  chest,  was  the  perfect  pic- 
ture of  a  healthy  man.  He  became  a  member 
of  the  firm  about  1869. 

John  W.  Mackay  was  the  tallest  of  the  quar- 
tet, with  such  a  pleasant  disposition  as  to  make 
him  the  most  popular  man  connected  with  the 
mining  interests  of  the  Coast. 

The  Hale  &  Norcross  Company  was  soon  in 
their  control,  and  their  prosperity  advanced 
[212] 


dOOJ'S   .0   33MAL 


nfrancisco 


86 

Flood  &  O'Brien — the  wealthiest,  the  most 
successful,  the  firm  longest  in  power  of  all  the 
operators  and  manipulators. 

They  had  to  commence  at  the  bottom  of  the 
ladder,  in  a  manner  similar  to  that  of  other 
opera*  sful  from  the  be- 


in  San 

He  was  stout  of  figure,  of  medium  height, 
his  sandy  hair  turning  gray,  pleasant  and 
earnest  in  conversation. 

William  S.  O'Brien  was  not  quite  as  tall  as 
his  partner;  his  black  hair  was  turning  gray; 
he  was  always  pleasant  and  agreeable. 


tur*  of  a  man.  He  bet 


Anecdotes 


tet,  v,  ;3  to  make 

him  the  most  poputo  .  ,-cted  with  the 

mining  interests  of  the 
The  Hale  &  Norcross  Company  was  soon  in 
JAMES  C.  FLOOD 


Stock  and  Exchange  Board 


with  great  strides.  The  control  of  Central  No. 
2,  the  formation  of  Consolidated  Virginia  and 
California  companies,  the  one  hundred  odd 
millions  produced  from  these  mines,  the  fur- 
nishing of  lumber,  timber  and  wood  to  the 
mines,  and  the  extraordinary  high  prices 
reached  by  these  stocks,  combined  to  make 
them,  in  1875,  among  the  wealthiest  of  Cali- 
fornians. 

After  the  entry  of  Mackay  and  Fair,  they 
were  known  in  the  street  as  the  Bonanza  firm. 

With  the  rich  mines  under  their  control  and 
with  the  bulk  of  the  stock  in  their  possession, 
this  firm  had  great  power  in  the  Board  in  1874 
to  1877,  when  prices  of  all  stocks  soared  to 
high  figures,  and  all  San  Francisco  traded  in 
them. 

To  have  the  confidence  and  friendship  of  a 
great  manipulator  in  prosperous  times,  is  a  sure 
road  to  wealth.  Among  those  who  enjoyed  the 
friendship  of  Mr.  Flood  were:  George  Wal- 
lace, Con.  O'Connor,  W.  S.  Lyle,  George  Cong- 
don,  J.  W.  Brown  and  others,  all  becoming 
wealthy.  On  one  occasion,  in  discussing  the 
immediate  future,  Mr.  Flood  told  Brown  that 
Consolidated  Virginia,  then  selling  at  $280, 
would  break  to  about  $210,  as  the  development 
was  not  looking  quite  so  well,  but  that  the 
depression  would  only  be  temporary,  and  that  Anecdotes 
Brown,  being  on  the  floor  of  the  Board  con- 
[213] 


History  of  the  SanRrmcisco 


Anecdotes 


tinually,  could  take  advantage  of  it,  but  that  he, 
himself,  had  not  the  time  and  was  too  busy  to 
attend  to  it. 

Brown  could  sell  5000  Consolidated  Virginia 
at,  say  $270,  and  re-purchase  at  $220—3  profit 
of  $50  a  share,  realizing  a  total  profit  of 
$250,000.  This  was  too  small  an  amount  in 
that  big  trading  market  for  the  prosperous 
Bonanza  firm  to  trifle  with.  They  did  not  have 
the  time  to  attend  to  a  little  thing  like  that, 
but  the  tip  was  given  to  one  of  their  friends, 
who  was  pleased  to  receive  and  act  upon  it.  It 
was  impossible  for  an  outsider  to  receive  so 
valuable  a  tip.  He  could  only  sell  as  he  saw 
the  market  weakening,  and  re-purchase  as  it 
became  stronger.  They  were  the  free  lances, 
but  would  trade  in  thousands  of  shares. 

Mr.  Fair  took  a  hand  in  the  market  at  one 
time. 

James  C.  Flood  and  W.  S.  O'Brien  were 
elected  members  of  the  Board  June  12,  1875, 
being  included  in  the  twenty  new  members, 
paying  $25,000  each  for  a  seat. 

When  Mr.  Flood  died,  his  son,  James  L. 
Flood,  managed  the  stock  market  for  about  ten 
years,  but  we  have  lost  sight  of  him,  and  he 
rarely  appears  among  us. 

They  also  deeded  to  us  a  portion  of  the  lot 
upon  which  our  magnificent  Pine  Street  build- 
ing was  afterwards  erected. 


YAXDAM   .W 


lly,  could  take  advantage  of  it,  \ 
himself,  had  not  the  time  and  was  too  1. 
attend  to  it  £ 

Brown  could  sell  5000  Consolidated  Virginia    « 
at,  say  $270,  and  re-purchase  at  $220— a  profit 
of   $50   a   share,   realizing   a   total   profit   of 
$250,000.    This  wa  amount  in 


was  imp^- 

valuable  y  sell  as  he  saw 

the  ii  re-purchase  as  it 

became  stronger.   They  were  the  free  lances, 
but  would  trade  in  thousands  of  shares. 

Mr.  Pair  took  a  hand  in  the  market  *• 
time. 


- 
rarely  appea; 

They  also  deed  ^ortion  of  the  lot 

upon  which  our  magnificent  Pine  Street  build- 

JOHN  W.  MACKAY 


Stock  and  Exchange  Board 


87 

O.  V.  Walker  was  elected  chairman  in  1883 
upon  the  resignation  of  B.  Howard  Coit,  who 
had  held  the  position  since  December  2,  1869. 
Mr.  Walker  was  peculiarly  fitted  for  this  posi- 
tion, on  account  of  his  stalwart  frame  and 
strong  voice.  Six  feet  tall,  of  heavy  weight,  his 
black  mustache  adding  to  make  his  appearance 
stately,  he  filled  the  position  with  credit  to 
himself  and  the  Board.  He  resigned  May  i, 
1903,  after  twenty  years  of  service. 
88 

Mr.  George  I.  Ives  had  been  active  as  a 
broker  several  years  before  joining  the  Board. 
His  experience  in  the  stock  business  had  been 
such  that  he  immediately  became  prominent 
after  his  election  in  January,  1870.  He  is  small 
in  stature,  quick  in  thought  and  action,  so 
much  so,  that  in  executing  an  order,  to  think 
was  to  act  with  him. 

89 

Billy  Brown's  bet  with  Jack  McKenty.— In 
those  palmy  days  of  1874-1875,  when  money 
was  so  plentiful,  should  a  broker  advance  the 
opinion  that  a  stock  would  advance  so  rapidly 
as  to  sell  at  some  marvelous  figure,  he  would  be 
bantered  immediately  to  back  up  his  opinion  by 
making  a  bet. 

Billy  Brown  and  Jack  McKenty  were  the 
[215] 


Anecdotes 


[History  of  the  Sanfraneisco 


Anecdotes 


best  of  friends,  and  each  of  such  a  jolly, 
generous  disposition  that  they  became  great 
favorites  among  their  brother  members. 

Billy  was  above  the  average  height,  jolly  and 
fat — and  nine  out  of  ten  fat  men  are  always 
good-humored.  A  sandy  mustache,  a  trifle  bald 
on  the  forehead,  splendid  judgment  in  specula- 
tion and  generally  well  posted,  he  rapidly  ac- 
cumulated a  large  bank  account.  Of  Jack's 
characteristics  I  have  spoken  heretofore. 

When  Jack  heard  Billy  advance  the  opinion 
that  Consolidated  Virginia  would  sell  at  $500 
within  thirty  days,  he  edged  his  way  up  to  him, 
through  the  crowd,  offering  to  bet  $5,000  that 
Brown  was  wrong.  To  the  surprise  of  his 
friends  Brown  accepted  the  bet.  McKenty 
again  suggested  that  the  loser  should  pay  for 
a  dinner  for  the  crowd  at  Martin's  restaurant. 
This,  also,  was  accepted,  and  the  bet  further 
increased  by  fifty  cases  of  champagne. 

Jack  immediately  hedged  on  the  bet  by  buy- 
ing several  hundred  shares  of  Consolidated 
Virginia.  Stocks  jumped  rapidly  at  the  close 
of  1874.  On  December  10,  1874,  Consolidated 
Virginia  sold  at  $230,  and  on  January  7,  1875, 
it  sold  at  $710.  The  day  it  reached  and  passed 
$500  was  a  great  day  in  the  Board  among  those 
cognizant  of  the  bet.  McKenty  sold  his  stock, 
and  his  profits  were  so  large  that  the  $5,000 
lost  on  the  bet  was  a  mere  trifle. 


Stock  and  Exchange  Board 


When  McKenty  would  win  a  bet  he  was  too 
much  of  a  gentleman  to  remind  the  other  of 
the  circumstance,  but  the  quicker  one  due  him 
was  paid,  the  higher  his  adversary  was  ad- 
vanced in  his  opinion. 

Again,  when  McKenty  lost  a  bet,  his  ideas  of 
honesty  and  fair  dealing  in  financial  matters 
was  such  that  he  would  pay  it  instanter — 
haggling  or  disputing  about  a  lost  bet  was  not 
a  feature  in  Jack's  character.  The  stock  had 
no  sooner  reached  $500,  than  McKenty's  check 
for  $5,000  was  in  Brown's  hands.  McKenty  had 
also  lost  the  dinner  and  the  fifty  cases  of  cham- 
pagne, and  his  disposition  was  such,  he  wanted 
Brown  to  drag  their  dinner  guests,  then  and 
there,  out  of  the  Board  and  sit  down  at  Mar- 
tin's restaurant.  But  McKenty  was  restrained ; 
business  had  still  to  be  attended  to,  but,  finally, 
the  dinner  hour  was  fixed.  The  brokers  sent 
home  to  their  wives  letters  of  the  usual  nature : 

"Beloved  Wife: 

"Unforeseen  circumstances,  etc.,  etc." 

Well,  we  all  know  how  it  is  in  cases  of  this 
kind,  the  missives  were  sent  and  the  guests 
assembled  at  Martin's  restaurant. 

If  there  was  a  man  in  San  Francisco  who 
could  furnish  a  dinner  right  up  to  the  queen's 
taste,  it  was  old  man  Martin,  and  if  there  was 
a  man  in  the  city  who  could  make  old  man     Anecdotes 
Martin  exert  himself,  it  was  Jack  McKenty. 
[217] 


[History  of  the  SanFrancisco 


Anecdotes 


The  dinner  began  with  oysters  and  bouillon 
— with  white  wine  a  la  McKenty.  Old  man 
Martin  had  a  limited  quantity  of  white  wine, 
the  like  of  which  had  never  been  imported 
before,  and,  if  you  believed  him,  would  never 
be  seen  here  again.  With  full  knowledge  of 
this,  Mr.  McKenty,  for  weeks  previous,  at 
breakfast,  lunch  and  dinner,  had  been  a  liberal 
imbiber. 

With  the  entrees  appeared  an  $8  Lafitte,  a 
rich  wine  much  in  vogue  in  those  days.  No 
dinner  was  considered  perfect  without  it.  The 
guests  also  had  the  privilege  of  tasting  the 
popular  Margoux  wine.  Fish,  fowl  and  flesh, 
with  a  bottle  of  champagne  in  front  of  each 
guest! 

The  music  was  furnished  by  a  full  string 
band — not  the  usual  harp,  fiddle  and  flute  so 
prevalent  in  French  restaurants  thirty-five 
years  ago. 

At  2  o'clock  in  the  morning  the  steadiest 
man  at  the  table  was  appointed  a  committee  of 
one  to  ascertain  what  had  become  of  the  musi- 
cians. On  his  return  he  announced  that  he  had 
found  the  musicians  seated  at  a  table,  each 
with  his  bottle  of  $8  Lafitte  in  front  of  him, 
doing  his  best  to  finish  it. 

The  climax  came  the  next  morning,  after 
Brown  had  left  his  home  to  catch  the  9:30 
A.  M.  crowd  on  California  and  Montgomery 
[218] 


HOTAM33   .3  .U 


.O  ,8At 


:>egan  with*  oysters  anc 
"n  white  wine  a  la  McKenty.    Old 
Martin  had  a  limited  quantity  of  white 
the  like  of  which  had  never  been  imported 
before,  and,  if  you  believed  him,  would  never 
be  seen  here  ag  mowledge  of 

this, 


npagne  in  front  of  each 
guest! 

The  music  was  furnished  by  a  full  s 
band — not  the  usual  harp,  fiddle  and  flute  so 
prevalent    in    Ffench    restaurants    thirtv-five 


doing  h 

The  clima>  after 

Brown  had  left  his  to  catch  the  9:30 

JAS.  G.   FAIR,  U.  S.   SENATOR 


Stock  and  Exchange  Board 


streets.  His  front  door  bell  rang,  and  the  maid 
ran  hastily  through  the  hall  announcing  some 
important  fact.  The  real  authority  in  the  house 
appeared  at  the  front  door  and  was  confronted 
by  two  draymen,  each  pointing  to  a  two-horse 
truck  and  their  contents — the  fifty  cases  of 
champagne.  They  were  greeted  with  such  re- 
marks as: 

"Mr.  Brown  must  be  crazy.  He  never 
could  have  ordered  so  much  wine.  We  can't 
receive  it.  You  must  take  it  back." 

The  draymen  simply  said  that  they  had  been 
ordered  to  deliver  it;  that  they  could  not  take 
it  back,  and  if  it  would  not  be  received,  they 
would  pile  it  up  in  the  front  yard.  And  so  when 
Brown  arrived  at  home  for  his  evening  meal,  he 
found  the  fifty  cases  of  wine,  neatly  placed  in 
the  yard,  close  to  the  front  door. 

90 

McKenty's  profits  in  selling  privileges  on 
Consolidated  Virginia  at  the  close  of  1877  were 
so  great  that  he  invested  all  of  his  wealth  in 
interest  bearing  securities  and  departed  for 
Paris.  To  any  one  who  would  pay  him  from 
$i  to  $5  a  share,  he  would  sell  the  privilege  or 
option  of  calling  on  him  for  a  specified  number 
of  shares  of  Consolidated  Virginia  at  a  price 
agreed  upon,  the  privilege  to  expire  in  ninety 
days. 

[219] 


Anecdotes 


History  of  the  Smfrondsco 


Anecdotes 


The  capital  stock  of  Consolidated  Virginia 
had  been  increased  to  540,000  shares,  and  the 
price  was  ranging  between  $65  and  $75  a  share. 

For  instance,  at  $5  a  share  he  would  sell  to 
the  buyer,  for  the  sum  of  $500,  the  privilege  of 
calling  on  him  for  100  shares  of  the  stock,  at 
say  $85  a  share,  at  any  time  up  to  ninety  days 
from  the  date  of  the  privilege.  He  was  con- 
vinced that  the  stock  had  seen  its  highest 
prices,  and  was  on  the  wane,  and  that  the 
manipulators  were  selling  as  fast  as  the  mar- 
ket would  take  it.  The  price  fixed  in  his  privi- 
leges was  between  $85  and  $100.  He  pur- 
chased a  considerable  number  of  shares  in  order 
to  protect  himself,  should  there  be  a  marked 
advance  in  the  price  of  the  shares.  The  stock 
did  advance  in  price,  but  not  sufficiently  to 
cause  all  of  the  purchasers  to  demand  their 
shares.  Thus,  the  profits  arising  from  the  sales 
of  stock  he  had  purchased,  and  the  money  paid 
to  him  on  the  privileges,  with  the  fortune  he 
had  previously  acquired,  was  deemed  sufficient 
to  support  him  until  the  close  of  life. 

McKenty  was  elected  in  April,  1864,  selling 
his  seat  shortly  afterward.  Was  elected  a 
second  time  in  1866  and  sold  his  seat  in  1873  to 
S.  H.  Brooks  of  the  firm  of  Brooks  &  Lee. 

He  was  elected  the  last  time  December  9, 
1874.  On  returning  from  Paris  he  sold  his 
last  seat  on  August  7, 1878,  to  Nat  T.  Messer. 
[  220  ] 


.8    MAIJJIW 


f  Consolidated  Vir 

had  been  increased  to  540,000  shares,  an 
price  was  ranging  between  $65  and  $75  a  share. 
For  instance,  at  $5  a  share  he  would  sell  to 
the  buyer,  for  the  sum  of  $500,  the  privilege  of 
calling  on  him  for  n  of  the  stock,  at 

say  $85  a  nety  days 

from  the  da< 


.1  a  considerable  number  o!  shares  in  order 
to  protect  himself,  should  there  be  a  marked 
advance  in  the  price  of  the  shares.  The  stock 
did  advance  in  price,  but  not  sufficiently  to 
cause  all  of  the  purchasers  to  demand  their 

;.  Thus,  the  profits  arising  from  the  sales 
;  and  the  money  paid 


Kenty  was  » 

secor 

S.  H.  •Brook 

He  was  elected  Deceml. 

On  returning  ;  he  sold  his 

WILLIAM    S.    O'BRIEN 
o] 


Stock  and  Exchange  Board 


91 

Gershom  A.  Coursen  became  a  member  in 
January,  1864,  and  sold  his  seat  in  May,  1907, 
thus  serving  as  a  member,  daily  on  the  floor, 
for  a  period  of  43  years,  the  longest  member- 
ship in  the  history  of  the  Board. 

He  had  sandy  chin  whiskers  and  mustache. 
His  head  was  large,  with  very  little  hair;  his 
dress  being  the  same  for  forty  years,  consist- 
ing of  a  black  felt  hat  and  black  suit  of  clothes, 
all  tending  to  make  up  a  figure  well  known  to 
the  stock  speculating  community. 

His  disposition  was  more  to  sell  short  on 
stocks  subsequent  to  a  good  rise,  rather  than 
to  buy  them  for  a  profit.  A  valuable  5o-vara 
lot  and  substantial  dwelling  house  on  Fulton 
street,  above  Steiner,  acquired  by  Mr.  Cour- 
sen many  years  ago,  was  the  result  of  these 
transactions,  a  fact  he  reiterated  in  the  Board 
on  many  occasions. 


92 

How  to  Place  a  Stock  on  the  Board: — In 
placing  a  mining  company  on  the  Board  list, 
the  officers  of  a  new  company  are  furnished 
with  a  blank,  which  they  are  requested  to  fill 
out,  giving  the  location,  capital  stock,  number 
of  shares,  title,  work  done  and  other  general 
information.    At  the  present  time,  November,     Anecdotes 
1909,  the  charge  for  listing  a  stock  is  $200. 
[221  ] 


History  of  the  Sanfrandsco 


Anecdotes 


The  Lady  Bryan  mine  is  located  about  three 
miles  east  of  Virginia  City,  in  seven-mile  can- 
yon. The  ore  is  rich  in  galena,  with  some 
silver  showing  in  it.  Some  friends  bought  the 
Lady  Bryan  mine  at  sheriff's  sale  in  1878, 
brought  it  to  our  firm  to  be  listed,  placing  the 
selling  of  the  treasury  stock  in  our  hands,  giv- 
ing us  for  the  time  being  the  entire  control  of 
the  stock  sales.  As  fast  as  we  made  sales  the 
necessary  amount  of  stock  was  to  be  furnished 
us,  and  no  other  stock  was  issued. 

We  placed  the  stock  on  the  Board  at  $2.50 
a  share,  guaranteeing  to  all  who  purchased 
directly  from  our  house  that  we  would  re- 
purchase his  shares  at  any  time  in  60  days  at 
the  price  paid.  In  pursuance  of  this  guarantee, 
we  bid  $2.50  a  share  at  every  Board,  for  any 
part  of  the  capital  stock. 

We  opened  an  account  at  the  Bank  of  Cali- 
fornia, in  our  name  as  custodians,  and  no  check 
was  to  be  drawn  against  the  account  for  60 
days,  except  for  stock  re-purchased.  The 
guarantee  given,  and  the  bid  made  at  each 
session  was  the  cause  of  the  success  met  with. 

We  rapidly  sold  $75,000  worth  of  the  stock, 
gradually  advancing  the  price  to  $2.75  and 
still  higher,  until  the  owners  of  the  property 
were  so  well  pleased  with  our  management 
that  further  sale  of  treasury  stock  was  stopped, 
they  purchasing  the  balance  unsold.  At  the  end 
[  222  ] 


Stock  and  Exchanae  Board 


of  60  days  the  stock  had  so  well  advanced  that 
we  were  not  called  upon  to  redeem  any  of  our 
sales,  and  we  passed  over  the  balance  of  un- 
sold shares  and  the  bank  account  to  the  owners. 

93 

Pauper  Alley: — Prior  to  1875,  Leidersdorff 
street  ended  half  way  between  California  and 
Pine  streets.  When  we  purchased  on  Pine 
street,  and  before  the  building  was  completed, 
the  street  was  cut  through  to  Pine.  In  antici- 
pation of  our  removal  many  brokers  located 
there  in  1877. 

Subsequent  to  the  Sierra  Nevada  deal,  and 
the  decline  of  the  stock  business,  that  portion  of 
Leidesdorff  street  south  of  California  was  ap- 
propriately termed  "Pauper  Alley."  It  was  a 
harbor  for  broken-down,  imaginary  capitalists. 
One  could  find  many  there  with  a  plausible 
story,  convincing  you  how  great  a  fortune  they 
could  have  possessed  had  they  only  sold  at  the 
proper  time.  At  the  conclusion  of  the  story  you 
would  generally  be  minus  ten  cents,  and  you 
could  buy  there  a  whole  lot  for  ten  cents — beer, 
with  lunch — three  stogies — boot-black — each 
for  five  cents.  In  that  block  of  the  narrow 
street  were  five  saloons,  four  cigar  stands,  two 
restaurants,  two  poolrooms,  a  candy  stand,  the 
side  entrance  to  the  Merchants'  Exchange,  the 
Hayward  and  the  Benson  buildings,  the  Pacific 
[223] 


Anecdotes 


History  of  the  Sanfrandsco 


Anecdotes 


Stock   Board,  brokers'   offices,   and   a  bucket 
shop. 

Passing  through  the  street  were  bankers, 
lawyers,  brokers,  insurance  men,  business  men 
of  every  grade;  during  Lenten  season,  those 
attending  services  in  the  Chamber  of  Com- 
merce, and  female  stock  operators  who  were 
inconsiderately  termed  "mud  hens." 

The  sidewalks  were  very  narrow.  Sidewalks 
and  street  were  generally  crowded  from  9  in  the 
morning  until  the  Boards  closed  at  three 
o'clock  in  the  afternoon. 

The  most  sorrowful,  pathetic  sight  was  the 
real  broken-down  stock  operator,  once  wealthy, 
now  poor,  in  threadbare  clothing,  too  proud  to 
ask  for  assistance,  but  with  an  expression  in 
the  eye  that  told  of  want  and  of  how  grateful 
any  slight  assistance  would  be  to  furnish  those 
at  home  with  a  little  food. 

Chinatown  has  always  been  the  great  attrac- 
tion of  tourists  to  our  city,  but  "Pauper  Alley" 
showed  that  sorrowful  side  of  human  nature 
always  to  be  found  in  some  retired  nook  in  all 
great  cities. 

The  earthquake  and  four  days  of  fire  wiped 
out  this  once  populous  locality.  Let  us  hope 
all  of  the  frequenters  of  "Pauper  Alley"  re- 
ceived a  portion  of  that  wealth,  so  generally 
contributed  by  our  country  in  our  hour  of 
need. 

[224] 


Stock  and  Exchange  Board 


94 

The  Excelsior  stock  was  active  in  1872.  M. 
Jasper  McDonald,  General  Colton  and  others 
were  large  stockholders,  and  a  number  of  short 
sales  having  been  made,  with  little  actual  stock 
appearing,  the  price  of  the  stock  rose  quickly. 

There  was  an  Excelsior  Company  in  our 
office,  the  stock  of  which  had  no  value  what- 
ever. A  broker  came  to  the  office,  showed  cer- 
tificates representing  5000  shares  in  this  cor- 
poration, and  asked  if  the  stock  was  genuine. 
He  was  assured  that  the  certificates  he  held 
had  been  regularly  issued.  That  afternoon  Mr. 
Sam  Linkton  came  in  and  said  that  Stanford 
(a  member  of  the  Board)  had  sold  Jasper  Mc- 
Donald 2000  shares  of  Excelsior  at  $42,  buyer 
30,  and  offered  him  2000  more,  which  Mc- 
Donald refused  to  purchase,  the  latter  member 
leaving  the  Board  room,  pale  and  evidently 
very  much  disturbed.  Upon  relating  to  Linkton 
the  fact  of  the  broker  calling  at  our  office  with 
the  valueless  Excelsior  stock,  Linkton  con- 
cluded that  an  advantage  was  being  taken 
against  McDonald,  and  urged  me  to  find  him 
and  explain  all. 

It  was  late,  and  Jasper  McDonald  could  not 
then  be  found,  but  I  knew  he  would  be  at  the 
Occidental  Hotel  that  night,  where  operators 
gathered.  Of  course,  it  was  thought  on  the 
street  that  the  Excelsior  corner  was  over  when 
[225] 


Anecdotes 


History  of  the  Sanfrancisco 


Anecdotes 


McDonald  had  refused  to  buy  all  offered  for 
sale.  I  was  at  the  Occidental  after  dinner,  look- 
ing for  my  friend  Jasper.  At  that  time  he  was 
a  handsome  man,  tall,  with  a  fine  black  beard. 
He  wore  a  silk  hat  and  a  light-colored  over- 
coat. In  a  short  time  Jasper  appeared,  looking 
very  much  worried  and  bending  over  in  his 
great  anxiety.  I  prevailed  upon  him  to  stop 
and  listen  to  my  story,  and,  as  the  narration 
progressed,  Jasper  became  more  erect,  and 
finally  grasping  the  whole  intent  of  the  story, 
stood  erect  like  a  man  who  was  confident  he 
could  succeed.  He  was  sincere  in  his  expres- 
sions of  thankfulness;  said  the  story  cleaned 
up  all  doubts  and  he  never  would  forget  it. 

The  next  day  the  contract  for  $84,000  was 
presented,  and  a  check  for  the  20  per  cent 
deposited  demanded,  amounting  to  $16,800. 
Yes,  Mr.  McDonald's  check  was  ready,  but  as 
it  was  a  stock  contract  presented,  and  not  a 
money  contract,  he  desired  to  see  the  stock, 
which  would  be  attached  to  the  contract,  before 
delivering  his  check.  This  was  demurred  to, 
but  finally  the  stock  was  shown,  and,  lo  and 
behold,  it  was  the  worthless  Excelsior  stock. 

The  Board  decided  that  Stanford  should  de- 
liver the  Excelsior  stock  listed  on  the  Board, 
and  no  other,  which  he  was  unable  to  do. 

The  stock  was  bought  in  for  his  account,  at 
a  high  figure.  He  could  not  pay  the  loss  and 

[226] 


Stock  and  Exchange  Board 


became  a  suspended  member.  For  years,  any 
one  proposed  on  that  seat  was  bound  to  be 
black-balled,  as  Stanford  would  importune  the 
members  to  do  so.  The  seat  was  finally  sold  for 
$30,000  in  June,  1875. 

McDonald  obtained  a  judgment  in  the  courts 
for  $300,000  against  Stanford. 

95 

George  W.  Cope  did  not  join  the  Board 
until  December,  1874.  As  a  young  man  his 
first  experience  in  the  stock  business  was  as 
a  clerk  for  Mark  L.  McDonald.  He  soon 
learned  the  ropes,  and  became  so  proficient  that 
McDonald  made  him  cashier  and  general  office 
manager. 

They  had  purchased  several  hundred  shares 
of  a  stock,  buyer  90,  from  Boyd  &  Davis.  The 
stock  broke  one  day  and  Mr.  Boyd  went  around 
for  extra  deposits,  Cope  giving  him  some  cer- 
tificates of  stock  instead  of  money,  the  security 
being  perfectly  satisfactory  to  Mr.  Boyd.  Sub- 
sequently, the  price  of  the  purchased  stock 
jumped  on  the  street  some  $40  or  $50  a  share, 
and  young  Cope  called  on  Mr.  Boyd  asking  a 
return  of  the  additional  security.  "What  for?" 
said  Mr.  Boyd.  "Why,"  said  Cope,  "the  stock 
we  bought  has  jumped  $50  a  share  on  the 
street."  Raising  his  right  arm,  and  shaking  his 
index  finger  in  Cope's  face,  Mr.  Boyd  re- 
[227] 


Anecdotes 


History  of  the  SanFrandsco 


Anecdotes 


marked:  "You  can't  play  any  street  prices  on 
me.  At  the  next  Board,  if  the  price  is  as  you 
say,  we  will  return  the  security."  Cope  was 
compelled  to  accept  Mr.  Boyd's  decision,  re- 
turning to  the  office  rather  crest-fallen,  but 
treasuring  up  the  remark  in  his  memory. 

The  price  of  a  stock  does  not  remain  sta- 
tionary, and  one  day  the  stock  again  broke 
badly  on  the  street  after  the  Board.  Mr.  Boyd 
went  to  the  different  brokers'  offices,  obtaining 
extra  deposits,  and  entering  McDonald's  office, 
went  to  Cope  demanding  more  "mud."  "What 
for?"  said  Cope.  "Why,"  said  Boyd,  "it  has 
broken  $50  in  the  street  after  the  Board." 
Shaking  his  index  finger  at  Mr.  Boyd,  Cope 
said :  "You  can't  play  any  street  prices  on  me. 
At  the  next  Board,  if  the  price  is  as  you  say,  we 
will  give  you  the  extra  deposit." 

96 

A  client  called  at  our  office  and  said:  "I 
would  like  to  take  a  shy  at  that  Consolidated 
Virginia.  What  is  it  selling  for?"  "405,"  was 
the  answer.  The  order  was  then  given  in  this 
manner :  "Sell  them  some,  but  at  not  less  than 
$400."  We  sold  several  hundred  shares  down 
to  $400,  and  offered  to  sell  100  shares  at  $400, 
buyer  30,  which  offer  put  quite  a  damper  on 
the  stock.  After  the  Board  the  price  was  $390, 
and  rather  weak  at  that  figure. 

[228] 


Stock  and  Exchange  Board 


On  reporting  the  sale,  the  client  said:  "Pick 
it  up  again.  I  only  wanted  to  take  a  little  shy 
at  it."  "Pick  it  up"  means  to  buy  quietly,  say, 
one  hundred  shares  at  a  time,  and  not  to  rush 
in  on  the  floor,  bidding  lustily  for  it. 

A  brother  broker,  with  an  office  adjoining 
ours,  was  sent  into  the  Board  and  bought  100 
shares  for  us.  He  reported  that  he  could  pur- 
chase another  100  shares  and  was  told  to  take 
it  quietly  when  offered.  In  about  ten  minutes 
he  was  given  another  order,  and  gradually  the 
entire  amount  was  re-purchased,  when  some 
one  tumbled  to  the  transaction,  and  the  price 
rallied  to  its  old  figure.  Those  kind  of  orders 
swelled  our  commission  accounts. 


97 

Mr.  Fred  W.  Hadley  joined  the  Board  in 
December,  1879,  buying  his  seat  of  United 
States  Senator  Charles  N.  Felton.  He  became 
quite  popular  early  among  the  members.  He 
was  shortly  afterwards  elected  secretary  of  the 
Board,  and  held  the  position  for  twenty  con- 
secutive years,  the  arduous  duties  of  the  office 
being  performed  by  assistant  secretaries. 

After  the  birth  of  Hadley,  Jr.,  the  whole 
family  attended  a  session  of  the  Board,  the 
members  assisting  in  making  it  a  lively  session, 
on  account  of  the  joyful  occasion.  Mr.  Doud,  Anecdotes 
the  partner  of  Mr.  Hadley,  brought  the  young 
[229] 


History  of  the  Sanfraneisco 


Anecdotes 


hopeful  on  the  floor  of  the  Board,  in  order  ths 
all  of  us  could  have  an  opportunity  to  view  a 
possible  future  President  of  the  United  States, 
in  his  swaddling  clothes. 

We  all  crowded  around  the  baby,  singing  the 
following  refrain: 

"There's   old  Fred  Hadley,  and  young  Fred 
Hadley, 

Who's  old  Fred  Hadley's  son, 
And  young   Fred   Hadley   will   be   old   Fred 
Hadley, 

When  old  Fred  Hadley  is  gone." 

98 

In  the  70*8,  the  palmy  days  of  the  Board, 
when  one  of  us  failed  ("busted"  was  the 
familiar  term),  if  we  showed  any  vim  about 
us,  with  a  determination  to  settle  up  and  re- 
sume, how  good  and  kind  our  brother  brokers 
were ! 

In  1871  there  was  a  thunderclap  on  the  street. 
One  of  the  largest  firms  in  the  Board  suspended 
—the  firm  of  McDonald  &  Whitney.  When 
Mark  McDonald  appeared  on  the  floor  in  the 
afternoon  Board  he  met  with  many  kind  words 
and  actions.  His  creditors  met  him  with  favor- 
able propositions ;  they  would  not  force  him  to 
deliver  stocks  sold  by  him ;  neither  would  they 
insist  on  his  paying  for  stocks  purchased.  He 
asked  all  of  them  to  close  their  accounts  with 
[230] 


.J   XHAM 


"ul  on  the  floor  of  the  Board,  in 
all  of  us  could  have  an  opportunity 
possible  future  President  of  the  United  Stat 
in  his  swaddling  clothes. 

We  all  crowded  around  the  baby,  singihg  the 
following  refrain: 
"There's  old  Fred  ung  Fred 


98 

In  the  yo's,  the  palmy  days  of  the  Board, 
when   one   of   us    failed    ("busted"   was    the 
familiar  term),  if  we  showed  any  vim 
us,  with  a  determination  to  settle  up  and  re- 
sume, how  good  and  kind  our  brother  brokers 

:;rd  suspended 


able  proposit  force  him  to 

deliver  stocks  sol  ither  would  they 

insist  on  his  paying  for  stocks  purchased.   He 
asked  all  of  them  to  close  their  accounts  with 
MARK  L.  MCDONALD 


Stock  and  Exchange  Board 


him  at  the  prices  of  that  Board,  promising  in 
time  to  settle  everything.  When  the  contracts 
were  all  closed  his  debt  to  Board  members 
amounted  to  something  over  $40,000. 

His  firm  was  very  prominent,  and  much  to  his 
astonishment  he  received  word  that  Mr.  Wil- 
liam Sharon  would  be  pleased  to  see  him. 
Should  this  prove  to  be  an  offer  of  assistance, 
it  would  be  of  too  much  importance  to  be  neg- 
lected. At  the  interview  an  agreement  was 
made  to  purchase  Overman,  then  selling  at 
about  $30  or  $40  and  with  an  expected  develop- 
ment to  advance  the  price. 

In  a  few  days  McDonald  resumed  business, 
and  was  soon  an  active  trader,  buying  Over- 
man in  particular.  As  the  stock  advanced  in 
price  a  number  of  short  sellers  appeared;  the 
higher  the  price  of  the  stock,  the  more  the 
shorts.  One  prominent  short  soon  became  wor- 
ried. One  day  the  stock  reached  $100,  at  which 
price  the  profits  on  McDonald's  stock  would 
more  than  pay  his  debts.  How  could  he  sell 
without  breaking  the  stock. 

At  this  juncture  in  rushed  the  prominent 
short,  now  frightened  to  such  a  degree  as  to  beg 
McDonald,  as  a  very  great  favor,  to  sell  him 
enough  to  cover  his  shorts.  Just  the  man  he 
was  looking  for,  but  he  must  not  appear  too 
willing ;  would  like  very  much  to  oblige  a  friend  Anecdotes 
he  esteemed  so  highly.  The  operator  again 
[231] 


History  of  the  SanFraneisco 


pleaded  their  long  friendship,  which  he  begged 
McDonald  to  remember.  "Well,  how  much  do 
you  want  ?"  The  amount  was  stated  and  finally 
sold.  The  poor  short  thanking  his  friend,  gave 
him  his  check  and  left  with  grateful  feelings. 
That  afternoon  the  creditors  of  McDonald  & 
Whitney  were  told  to  send  in  their  accounts, 
which  were  all  promptly  settled. 

99 

In  those  days,  when  a  broker  was  in  finan- 
cial trouble,  it  became  a  custom  for  ten  of  us 
to  each  loan  him  $500,  making  a  capital  of 
$5,000  to  enable  him  to  resume. 


Anecdotes 


IOO 

H.  H.  Noble  was  broker-in-chief  for  E.  J. 
Baldwin.  Noble  watched  the  Board  in  the 
interest  of  his  client  every  minute  of  the  day. 
At  the  heighth  of  the  market,  probably  Jan. 
7th,  1875,  Keene  bid  $315  for  10,000  shares 
of  Ophir.  Baldwin  was  not  in  the  Board,  and 
Noble  passed  his  book  of  orders  to  another 
broker,  requesting  him  to  execute  the  orders 
on  the  stocks  yet  to  be  called,  and  quickly  hied 
himself  to  Baldwin's  office.  A  broker  must  be 
quick  about  a  business  of  this  kind,  and,  on 
opening  the  door  of  Baldwin's  office,  he  hurried 
up  to  his  desk,  saying:  "Keene  is  bidding 
$315  for  10,000  shares  of  Ophir."  Here  was 
[232] 


$tock  and  Exchange  Board 


the  long  waited  for  opportunity  to  get  the  best 
of  a  large  trade. 

"Sell  it,"  said  Baldwin  rising  in  his  excite- 
ment. 

It  was  a  $3,000,000  order  and  Noble  naturally 
hesitated  a  moment. 

Baldwin  saw  the  hesitation,  and  in  his  eager- 
ness to  make  the  sale,  and  beat  Keene  if  possi- 
ble, said  to  Jules  Cavallier,  his  bookkeeper: 
"Give  me  that  box  of  stocks."  When  handed 
the  box  Baldwin  grasped  a  bunch  of  certifi- 
cates, rolled  them  up  without  looking  at  them, 
and  handed  them  to  his  broker  with  the  re- 
mark: "There  is  security  enough.  Hurry  up!" 

When  Noble  arrived  at  the  Board  room 
Keene  was  still  there,  but  Mr.  James  R.  Keene 
was  one  of  the  brightest  of  brokers.  He  knew 
when  to  bid  for  $3,000,000  worth  of  Ophir,  and 
he  knew  when  to  cease  bidding. 

The  bid  was  not  repeated,  and  Mr.  Noble  lost 
the  chance  of  making  a  commission  of  $15,000. 

The  securities  were  returned  to  Baldwin  and 
we  learned  afterwards  that  they  contained 
$2,000,000  worth  of  stock. 


101 

There  was  antagonism  between  Keene  and 
Baldwin.    Keene  was  Sharon's  representative 
in  buying  the  cash  stock,  and  selling  the  seller     Anecdotes 
ninety  stock.    Baldwin's  position  in  the  lobby 
[233] 


History  of  the  Sonfrandsca 


Anecdotes 


was  just  back  of  the  seat  of  his  principal  broker, 
H.  H.  Noble.  During  an  excited  session,  while 
bidding  for  cash  Ophir  stock,  Keene,  in  order 
to  depress  the  market,  offered  to  sell  5,000 
Ophir  at  $60,  seller  ninety,  a  figure  much  below 
the  cash  price.  Baldwin's  voice  could  be  heard : 
"Take  it,"  and,  quick  as  a  shot,  came  Noble's 
response:  "Take  it."  It  was  a  splendid  pur- 
chase as  subsequent  events  abundantly  proved. 
The  stock  sold  as  high  as  $315  on  Jan.  7,  1875. 

102 

George  I.  Ives,  a  relative  of  Senator  Felton, 
has  been  connected  with  brokerage  business 
since  the  organization  of  the  San  Francisco 
Stock  and  Exchange  Board.  If  Johnnie  Skae 
had  been  asked  to  announce  this  fact,  he  prob- 
ably would  have  said :  "Ives  was  a  broker  when 
Mount  Davidson  was  a  hole  in  the  ground." 
There  are  not  many  persons  living  today  who 
were  acting  as  brokers  when  Mr.  Ives  first 
engaged  in  the  business.  He  was  a  broker  in 
Virginia  City  in  1866,  returned  to  San  Fran- 
cisco and  entered  the  Board  in  1870.  Keene  and 
Ives  were  in  business  together  in  1870-1871. 

Ives  has  dark  hair  and  mustache,  always  well 
dressed,  and  so  quick  in  action  that  the  thought 
to  sell  a  stock  and  the  act  of  selling  with  him 
are  instantaneous,  thus  forcing  other  brokers 
to  be  equally  quick  or  to  drop  behind. 

[234] 


he  seat  of  his  principal  b 
Noble.  During  an  excited  session, 
ig  for  cash  Ophir  stock,  Keene,  in  order 
to  depress  the  market,  offered  to  sell  5,000 
Ophir  at  $60,  seller  ninety,  a  figure  much  below 
the  cash  price.  Baldwin's  voice  could  be  heard : 
"Tak 

' 


has  i  nectcci  >iness 

since  the  organization  of  the  San  Francisco 
Stock  and  Exchange  Board.  If  Johnnie  Skae 
had  been  asked  to  announce  this  fact,  he  prob- 
ably would  have  said :  "Ives  was  a  broker  when 
Mount  Davidson  was  a  hole  in  the  ground." 
ny  persons  living  today  who 

engaged  in  the  b 


dressed,  and  *  :  thought 

to  sell  a  stock  and  th  selling  with  him 

are  instantaneous,  thus  forcing  other  brokers 
to  be  equally  quick  or  to  drop  behind. 
PAUPER   ALLEY 


Stock  and  Exchange  Board 


It  will  do  no  harm  to  state  the  following 
incident  regarding  Ives  and  Keene : 

In  connection  with  his  own  business,  Ives 
executed  orders  for  the  great  firm  of  Burling 
Bros.  In  the  heighth  of  the  great  excitement 
at  the  close  of  1874,  Ives  received  an  order  from 
Burling  to  buy  all  the  Ophir  offered  at  $299 
and  to  sell  what  was  wanted  at  $300.  It  was 
at  the  time  when  we  had  opened  the  Board 
rooms  for  those  great  informal  sessions,  held 
from  9:30  to  10:30  in  the  morning.  As  the 
brokers  were  serving  alternately  as  caller,  it 
was  Ives'  turn  to  call  the  principal  stocks,  and 
from  the  rostrum  he  had  sold  probably  200 
Ophir  at  $300  when  Keene  was  seen  hurriedly 
edging  his  way  through  the  crowd  to  the  front. 
They  were  no  longer  partners,  and  here  was  a 
show  for  Ives  to  transact  some  business. 

"What's  Ophir?"  was  Keene's  first  remark. 

"Well,  you  are  the  man  I  am  looking  for," 
said  Ives,  "I  will  give  you  $299  for  500  shares." 

"What  will  you  sell  500  for?"  asked  Keene. 

"Three  hundred  dollars,"  was  Ives'  rejoinder. 

"Take  'em,"  said  Keene. 

"Sell  you  500  more,"  said  Ives. 

"What  will  you  give  for  500?"  Keene 
shouted. 

"Two  hundred  and  ninety-nine,"  came  from 
Ives.  Anecdotes 

"Sold,"  said  Keene. 

[235] 


History  of  the  Sanfhmcisco 


Take  50 

What  will  you  sell  500 

Three  hundred  dollars 


Anecdotes 


"Sell  you  500  more ;"  from  Ives. 

Keene  scratched  his  head  a  minute  and  said : 
"What  will  you  give  for  500?" 

"Two  hundred  and  ninety-nine  dollars,"  said 
Ives. 

"Sold;"  again  from  Keene. 

"Have  you  been  to  your  office  this  morn- 
ing?" queried  Ives  from  the  rostrum. 

"No,"  answered  Keene. 

"Well,  suppose  you  go  there  before  transact- 
ing any  more  business." 

It  was  thought  that  Ives  had  a  supporting 
order  from  the  great  Bank  of  California  ring, 
and  that  Keene's  order  was  from  the  same 
source. 

Ives'  transaction  amounted  to  almost 
$600,000,  and  Keene's  purchases  and  sales  were 
the  same. 

Some  one  lost  $1,000  on  the  above  transac- 
tions, and  also  paid  commissions  on  $1,200,000. 
103 

J.  H.  Mahoney,  Jr.,  always  known  as  Jack 
Mahoney,  was  another  intimate  friend  of  Ives. 
Mahoney  was  of  a  New  York  family,  suffi- 
ciently wealthy  to  relieve  Jack  from  seeking 
employment,  but  still  he  left  home  and  family 

[236] 


Stock  and  Exchange  Board 


to  strike  out  and  see  if  he  could  not  make  him- 
self independent  by  his  own  exertions. 

Jack  was  a  handsome  young  fellow,  with 
dark  hair  and  mustache,  above  the  average 
height,  faultlessly  dressed,  and  right  in  the 
swim  with  the  big  stock  element.  He  was  clerk 
for  George  Smiley  for  a  short  time,  but  joined 
the  Board  in  1873,  paying  $6,000  for  the  seat  of 
J.  L.  Romer. 

He  received  an  order  one  day  to  sell  some 
Consolidated  Virginia  at  $200  a  share.  Meet- 
ing Ives  on  the  street  he  offered  him  50  shares 
at  $200.  Ives  knew  it  was  extremely  cheap  and 
also  a  good  purchase,  but  as  his  bank  account 
was  weak  that  day,  he  stated  this  fact  and  re- 
gretted he  could  not  purchase  it.  Mahoney 
finally  sold  him  the  50  shares,  "buyer  10"  at 
$200,  Ives  very  generously  stating  that  Jack 
should  be  joint  purchaser  with  him,  which  was 
agreed  upon.  As  Ives  was  entering  the  pur- 
chase Jack  offered  to  sell  50  more,  which  so 
staggered  Ives  that  he  commenced  to  scold 
Jack  in  round  terms  for  not  letting  him  know 
he  had  more  stock  for  sale.  Keene  came  along 
and  listened  to  the  wrangling,  agreeing  also  to 
go  in  on  the  pool,  and  so  they  purchased  the 
100  shares,  "buyer  10,"  the  contract  being  made 
with  Keene.  When  this  was  all  arranged,  Jack 
offered  to  sell  another  50  shares  on  the  same  Anecdotes 
terms,  and  again  Ives  broke  out,  upbraiding 
[237] 


History  of  the  Sanfrandsco 


Jack,  when  Keene,  a  plunger  from  the  word  go, 
purchased  the  additional  stock,  stating  that  he 
would  purchase  all  the  stock  Jack  had  for  sale. 
But  that  last  sale  ended  the  wrangling.  It  was 
all  Jack  had.  The  next  day  the  stock  jumped 
to  $230  a  share,  George  and  Jack  selling  at  this 
price  the  100  shares  which  was  their  portion, 
realizing  $1,500  each.  But  Keene,  the  brightest 
of  them  all,  held  his  50  shares  and  sold  it  at 
high  figures.  Within  a  few  weeks  the  stock 
was  selling  at  $800  a  share  on  time  sales. 


Anecdotes 


104 

Mahoney  kept  his  bank  account  with  Dona- 
hoe,  Kelly  &  Co.  On  one  occasion  he  exe- 
cuted a  selling  order,  either  directly  for  Mr. 
Flood,  or  through  one  of  Flood's  brokers,  and 
gave  his  check  for  the  amount  of  the  sales, 
which  was  over  $900,000. 

A  few  days  subsequent  to  this  he  called  at 
the  bank  and  told  Mr.  Howard  Havens,  the 
manager,  that  he  wanted  to  draw  a  check  for 
about  $4,500,  but  that  it  would  overdraw  his 
account  $500,  and  requested  this  overdraft. 

Mr.  Havens  stepped  back  and  glanced  at  the 
balance  sheet,  looked  at  Jack,  and  again  at  the 
balance  sheet,  then,  walking  forward  with 
rather  a  dazed  expression,  resting  his  elbow  on 
the  counter,  and  with  his  hand  on  his  chin,  re- 
marked : 

[238] 


Stock  and  Exchange  Board 


Mahoney,  you 
bank  for  $4,500? 


When  Jack's  bank  book  was  made  up  a 
end  of  the  month  he  ascertained  that  his  checks 
for  $900,000  had  not  been  presented,  and,  there- 
fore, when  he  requested  an  overdraft  of  $500 
he  had  nearly  a  million  to  his  credit. 

105 

All  this  occurred  some  time  before  the  open- 
ing of  the  Nevada  Bank  in  October,  1875.  The 
bank  was  organized  with  a  large  capital,  and  the 
Bonanza  firm  was  selling  large  blocks  of  stock 
in  order  to  raise  the  cash  capital  for  the  bank. 
Had  the  public  known  of  these  large  sales  the 
prices  of  stock  would  have  broken  badly,  and, 
in  order  to  conceal  the  matter  from  the  public, 
Col.  Eyre,  the  broker  for  the  Bonanza  firm, 
gave  selling  orders  to  different  brokers,  and, 
instead  of  giving  his  own  checks  to  the  firm 
for  these  sales,  he  delivered  to  them  direct  the 
checks  he  received  from  the  brokers,  which 
checks  Mr.  Flood  retained  in  his  office  until 
enough  stock  had  been  sold,  the  entire  amount 
of  which  furnished  the  capital  for  the  new  bank. 

I  think  the  following  story  is  correct  in  its 
essential  details;  at  all  events,  it  was  so  un-     Anecdotes 
derstood  among  the  brokers: 

[239] 


History  of  the  SanFrandsco 


Anecdotes 


All  old  Californians  will  recollect  Joseph  H. 
Jones,  a  prominent  and  an  old  member  of  the 
Board.    At  one  time  he  had  been  the  secretary 
of   the    Crown   Point   Mining    Company;     he 
joined  the  Board  in  1867.    He  was  above  the 
average  height,  rather  stout,  with  black  hair 
and  the  finest,  fullest,  long  black  beard  known 
on  the  street ;  always  dressed  in  a  black  suit  of 
clothes,  genial  and  jolly.    He  had  just  returned 
from  an  Eastern  trip.     I  think  I  am  right  in 
stating  that  he  opened  an  account  with  the  im- 
portant banking  house   of  Belloc   Freres;   in 
addition  he  had  an  account  with  the  Bank  of 
California.     He  received  large  selling  orders 
from   Col.   Eyre,   delivering   his   checks   each 
day,  which  identical  checks  Col.  Eyre  would 
turn  over  to  Mr.  Flood,  and,  unknown  to  Jones, 
the  checks  would  be  locked  up  in  Mr.  Flood's 
safe  instead  of  being  cashed. 

One  day  Jones  received  a  note  from  his  new 
bankers  to  call  at  their  office  immediately. 
Jones  was  not  very  wealthy  at  that  time,  and 
such  a  note  from  his  new  bankers  was  porten- 
tious,  to  say  the  least.  Summoning  up  a  stiff 
upper  lip  he  proceeded  to  the  bank  and  was 
ushered  into  the  private  office  and  seated  at 
a  desk  with  one  of  the  firm.  He  expected  dire- 
ful results.  He  was  told  the  bank  was  pleased 
to  have  his  account,  would  extend  credit  to 
him  if  needed,  now  that  they  were  acquainted, 
[240] 


Stock  and  Exchange  Board 


but  that  the  bank  must  insist  for  the  present 
that  Mr.  Jones  should  not  pile  up  any  more 
money  with  the  firm;  that  he  had  so  large  an 
amount  of  money  to  his  credit  that  the  bank's 
vaults  were  full  and  that  there  was  no  more 
room  to  store  any  more  gold;  that  he  must 
not  deposit  any  more  money,  as  the  bank  posi- 
tively could  not  receive  it,  and  that  Mr.  Jones 
would  confer  a  very  great  favor  on  the  bank 
if  he  would  check  out  at  least  one-half  of  that 
which  stood  to  his  credit. 

Such  talk  was  so  unintelligible  to  Jones  that 
he  was  dazed  for  a  moment;  if  the  conversa- 
tion had  been  held  in  Chinese  he  could  have 
understood  it  as  well..  Jones  promised  to  do 
what  he  could  to  help  the  bank  and  returned 
to  his  office.  Finally,  grasping  the  situation 
that  his  checks  had  not  been  presented,  he  pro- 
ceeded to  Col.  Eyre,  telling  him  the  facts, 
stating  he  had  kept  many  accounts,  had  often 
been  told  not  to  increase  an  overdraft,  but 
never,  never,  never  before  had  he  heard  of  a 
depositor  being  ordered  to  stop  piling  up 
money  in  a  bank.  Of  course,  the  distress  of 
the  bank  was  instantly  relieved. 

106 

While  writing  about    banks,    bankers    and 
overdrafts,  it  is  well  to  state  that  business  was 
conducted  on  a  somewhat  more  liberal  scale 
[241] 


Anecdotes 


History  of  the  Sanfrandsco 


Anecdotes 


thirty  years  ago.  When  a  broker  was  known 
to  be  all  right,  and  his  standing  established  at 
the  bank,  he  did  not  bother  himself  about  giv- 
ing notes  when  money  was  needed,  but  just 
kept  on  drawing  checks  and  making  deposits, 
sometimes  with  a  large  balance  to  his  credit, 
but  more  often  overdrawn. 

Our  office  was  next  door  to  the  Bank  of  Cali- 
fornia. One  day  Mr.  Brown,  the  cashier, 
entered  our  office  with  the  remark: 

"What  have  you  been  doing?" 

"Why,  what's  the  matter,  Mr.  Brown?" 

"Nicolson  says  he  has  cashed  your  checks 
for  $130,000,  at  least,  today;  that  you  have 
made  no  deposits  and  that  you  were  overdrawn 
last  night." 

That  was  about  the  severest  remark  a  banker 
could  make,  and  it  explained  everything. 

I  took  Mr.  Brown  behind  the  counter  and 
approached  the  junior  partner,  who  was  very 
busy;  he  held  up  his  hand  for  us  not  to  inter- 
rupt him.  Mr.  Brown  looked  over  his  shoulder, 
saw  three  of  those  long  deposit  tags,  in  use 
thirty  years  ago,  all  filled  out,  the  last  one 
being  footed  up,  and  a  stack  of  checks  six 
inches  high,  all  of  which  indicated  that  we 
were  about  to  make  a  deposit  in  the  bank. 

Mr.  Brown  turned  away  and  in  leaving  the 
office  said:  "Draw  $130,000  more." 

Mr.  Brown  was  certainly  a  popular  cashier. 

[242] 


Stock  and  Exchange  Board 


107 

At  the  heighth  of  the  market  of  1874-75-76, 
caused  by  the  discovery  of  the  great  bonanza 
in  California  and  Consolidated  Virginia,  many 
brokers  and  operators  employed  a  personal 
representative  at  Virginia  City  to  notify  them 
as  to  new  strikes  and  the  condition  of  the 
mines  generally.  Each  representative  was  fur- 
nished with  a  cipher  book,  so  that  his  em- 
ployer could  be  informed  secretly.  The  word 
"code"  was  not  used  at  that  time. 

It  was  rumored  that  a  bright  young  man, 
conversant  with  telegraphic  matters,  had 
learned  to  read  all  of  these  private  cipher 
despatches,  and  so  it  became  necessary  to 
change  the  old  ciphers  and  invent  new  ones. 
All  the  residents  of  Virginia  City  that  were 
prominent  in  stock  circles,  were  compelled  to 
adopt  this  course,  and  Mr.  Sharon,  in  particu- 
lar, went  to  quite  an  expense  to  obtain  a  new 
and  elaborate  cipher.  In  the  meantime  efforts 
to  discover  the  culprit  were  rewarded  with 
success.  A  suspect  in  Virginia  City  was  taken 
to  the  agency  of  the  Bank  of  California  and 
some  pointed  interrogatories  were  propounded 
to  him.  When  he  ascertained  he  was  not  to  be 
jailed  nor  hanged,  he  made  a  complete  con- 
fession. Several  examples  in  the  old  ciphers 
were  presented  to  him  and  he  read  them  off  Anecdotes 
like  so  much  primer.  Drawing  a  long  breath 

[243] 


History  of  the  Sanfrandsco 


Anecdotes 


and  appearing  very  much  relieved,  Mr.  Sharon 
remarked,  now  that  the  examination  was  all 
over,  that  he  had  become  tired  of  his  old 
cipher  anyhow  and  was  much  pleased  with  his 
new  one,  which  he  was  confident  no  one  could 
read.  Noticing  a  twinkle  in  the  eye  of  the 
young  man,  Sharon  asked  him  if  it  was  possible 
for  him  to  translate  the  new  form. 

"You  mean  the  one  you  have  been  using  for 
the  past  four  or  five  days?" 

"Yes,"  said  Mr.  Sharon. 

"Well,  that  is  as  plain  as  A,  B,  C,"  was  the 
rejoinder. 

Doubting  the  truth  of  this  remark,  Mr. 
Sharon  wrote  a  dispatch  in  the  new  form  and 
handed  it  to  the  young  man  to  test  him. 

He  read  the  first  cipher  word,  turned  the 
despatch  upside  down  on  the  table,  raised  his 
eyes  to  the  ceiling,  and  after  a  moment's 
thought  gave  the  translation,  and  carried  the 
same  process  through  with  the  balance  of  the 
telegram. 

When  he  had  finished,  the  translation  was  so 
perfect  that  Virginia  City  concluded  that  it 
could  survive  if  this  young  man  should  emi- 
grate to  some  other  State — and  he  did. 

108 

The  Consolidated  Virginia  Mining  Company 
was  formed  by  the  consolidation  of  the  Sides 
[244] 


SHT   OT  TI8IV   8'THAHO   .8  .U   TW3ai835iq 

GV8I   ,2fOOT8MOO 


y  (/the  Sanfrandsco 


ppcaring  very  much  relieved,  Mr.  Sharon 
remarked,  now  that  the  examination  was  all 
over,  that  he  had  become  tired  of  his  old 
cipher  anyhow  and  was  much  pleased  with  his 
new  one,  which  he  was  confident  no  one  could 
read.  Noticing  a  twinkle  in  the  eye  of  the 
young  man,  Sharon  a 
for  him  to  trair 

. 


Doubting  the  truth  of  this  remark,  Mr. 
Sharon  wrote  a  dispatch  in  the  new  fdrm  and 
handed  it  to  the  young  man  to  test  him. 

He  read  the  first  cipher  word,  turned  the 
despatch  upside  down  on  the  table,  raised  his 
eyes  to  the  ceiling,  and  after  a  moment's 
thought  gave  the  translation,  and  carried  the 

i  the 


grate  to  some  ct 

1 08 

The  Consolidated  Virginia  Mining  Company 
formed  by  the  consolidation  of  t! 

PRESIDENT  U.  S.  GRANT'S  VISIT  TO 
COMSTOCK,   1879 


Stock  and  Exchange  Board 


Mining  Company,  containing  500  feet,  and  the 
White  &  Murphy,  containing  210  feet.  There 
were  11,600  shares  in  the  capital  stock,  and, 
in  1868  to  1871,  Bolton  &  Bell  were  the  prin- 
cipal stockholders. 

The  control  of  the  mine  soon  passed  into 
the  hands  of  Flood  &  O'Brien,  the  firm  paying 
as  high  as  $8  a  share  for  the  stock. 

Any  stockholder  in  this  mine  in  1871,  who 
bought  100  shares,  and  retained  the  same  until 
January,  1875,  realized  a  princely  fortune. 

Mr.  H.  H.  Noble  states  that  he  purchased 
for  Mr.  Con  Sullivan  100  shares  at  that  price — 
$8  a  share. 

Con.  Sullivan  was  a  thick-set,  heavy  gen- 
tleman with  a  florid  complexion,  black-grayish 
hair  and  heavy  mustache,  above  the  average 
heighth,  well-known  on  California  street  and 
quite  popular  among  the  brokers.  Mr.  Sulli- 
van did  not  retain  possession  of  that  100  shares 
until  it  reached  its  highest  price,  as  such  a 
course  would  be  contrary  to  the  custom  of  all 
speculators.  It  was  also  reported  in  the  Board 
that,  subsequently,  Mr.  Flood  offered  him  a 
check  for  $680,000  for  the  shares  he  owned  in 
Consolidated  Virginia.  Sullivan  asked,  and 
was  given  an  hour,  to  consider  the  proposition. 
He  returned  in  a  short  time,  and,  as  it  was  a 
pretty  large  check,  finally  accepted  it  and  Anecdotes 
turned  over  his  stock. 

[245] 


History  of  the  Sanfhmdsco 


Anecdotes 


To  illustrate  the  manner  in  which  large  for- 
tunes were  made  between  1870  and  1875,  let 
us  follow  out  the  possible  profits  that  might 
have  been  acquired  by  purchasing  100  shares 
of  this  stock  at  $8  a  share,  at  the  time  of  Sul- 
livan's purchase,  which  amounted  to  $800. 

In  May,  1872,  the  capital  stock  of  Consoli- 
dated Virginia  was  increased  from  11,600 
shares  to  23,600  shares,  each  stockholder  re- 
ceiving two  shares  for  each  share  owned  by 
him.  Thus,  the  holder  of  the  100  shares  re- 
ferred to  now  received  a  new  certificate,  repre- 
senting 200  shares,  in  place  of  his  former  cer- 
tificate of  100  shares. 

On  October  18,  1873,  the  capital  stock  was 
still  further  increased  to  108,000  shares,  "The 
Bulletin"  of  that  date  representing  the  previous 
capital  stock  as  21,600  shares,  the  increase  thus 
being  five  shares  for  one.  The  holder  of  the  200 
share  certificate  now  received  a  new  certificate, 
in  this  further  increase,  of  1000  shares  in  lieu 
of  his  200  shares. 

During  the  next  three  months  the  directors 
of  the  Consolidated  Virginia  Mining  Company 
gradually  gained  control  of  the  Kinney,  Cen- 
tral No.  2,  California,  and  Central  No.  i  Mining 
Companies,  and  in  January,  1874,  organized 
a  new  corporation  out  of  this  additional  ground, 
and  called  it  the  California  Mining  Company, 
each  stockholder  in  the  Consolidated  Virginia 
[246] 


Stock  and  Exchange  Board 


Mining  Company  receiving  a  stock  dividend  in 
the  California  of  7-12  of  a  share  for  each  share 
he  owned  in  the  parent  corporation;  thus,  the 
stock  dividend  on  the  above  mentioned  1000 
shares  would  amount  to: 

1000  X  7-12  =  7000-12  =  583  shares,  or,  in 
round  figures,  let  us  call  it  600  shares. 

The  original  100  shares  we  have  been  illus- 
trating was  now  represented  by  1000  shares  of 
Consolidated  Virginia  and  600  shares  of  Cali- 
fornia. 

To  Mr.  James  C.  Flood  must  be  accorded  the 
credit,  to  a  great  extent,  for  this  and  subse- 
quent events,  and  to  Mr.  James  G.  Fair  the 
credit  of  discovering  ore. 

Mr.  Flood's  idea  was,  instead  of  sinking 
shafts  other  than  the  Consolidated  Virginia, 
then  down  1200  feet,  to  develop  all  this  ground 
by  running  a  drift  from  the  1165  foot  level  of 
the  Gould  &  Curry,  north  through  the  property 
to  the  Ophir  shaft.  This  was  done  under  Mr. 
Fair's  management.  In  one  place  $40  ore  was 
discovered.  The  Consolidated  Virginia  shaft 
was  then  lowered  to  the  1500  foot  level,  a  long 
drift  was  extended  and  three  cross-cuts  run  at 
the  same  time,  which,  with  additional  hard 
work,  soon  developed  the  greatest  bonanza  of 
modern  times. 

The  legal  firm  of  Williams  &  Bixler  in  Vir-     Anecdotes 
ginia  City,  composed  of  General  Thomas  H. 
[247] 


History  of  the  Sanlrancisco 


Anecdotes 


Williams  and  David  Bixler,  had  performed 
some  legal  business  for  a  client,  who  was  un- 
able to  pay  them  in  coin,  and  the  firm  was 
compelled  to  accept  a  deed  for  100  feet  of 
ground  in  the  Central  No.  2.  Upon  the  con- 
solidation mentioned  above  and  the  subsequent 
discoveries,  the  firm  acquired  a  princely  for- 
tune, the  lowest  estimate  of  each  member  being 
placed  at  $4,000,000. 

The  100  shares  we  have  been  following  came 
in  for  its  share  also.  It  had  now  increased  to 
1000  shares  of  Consolidated  Virginia  and  600 
California. 

In  January,  1875,  these  two  stocks  sold  as 
high  as  $800  a  share  on  time  sales. 

1000  shares  of  Consolidated  Virginia  at 
$800  a  shai£  would  amount  to 
1000  X  800  $800,000 

The  600  California  at  $800  a  share  would 

amount  to  600  X  800 480,000 


Total  $1,280,000 

And  all  on  an  original  investment  of  $800, 
some  assessments,  however,  having  been  paid 
by  the  holder. 

And  when  we  get  the  water  out  of  the  Corn- 
stock  Lode  and  sink  to  and  develop  the  3000 
foot  level,  and  below,  should  we  discover  ore, 
we  are  going  to  make  those  kinds  of  invest- 
ments all  over  again. 

[248] 


Stock  and  Exchange Board 


109 

The  banks  and  bankers  were  very  kind  and 
considerate  to  the  brokers  in  the  great  mar- 
ket occurring  between  1873  to  1878.  We  could 
not  have  transacted  business  without  the  busi- 
ness application  of  banking  methods  to  our 
needs. 

The  prices  of  the  stocks  listed  on  the  Board 
in  January,  1875,  footed  up  a  grand  total  of 
nearly  $350,000,000  in  gold;  and  we  were  com- 
pelled to  rely  solely  on  the  Pacific  Coast  for 
this  amount,  as  gold  did  not  become  a  circu- 
lating medium  in  New  York  until  Jan.  i,  1879, 
four  years  after  our  high  market,  the  latter 
date  being  the  time  of  the  resumption  of 
specie  payments  by  the  United  States  Govern- 
ment. 

The  profits  of  bankers  and  brokers  were  very 
great  during  the  time  mentioned.  A  banker 
detailed  to  Col.  Eyre  one  day  the  facts  of  the 
income  accruing  to  his  bank  for  that  year,  when 
the  Colonel  replied  that  his  income,  as  a  broker, 
greatly  exceeded  that  of  the  bank  mentioned; 
also  stating  that  the  capital  invested  in  his 
business  was  not  equal  to  one-tenth  of  the 
capital  stock  of  the  bank. 

The  final  payments  on  the  large  time  trans- 
actions of  that  period,  and  the  necessary  cer- 
tifying  of  checks   of  large   amounts   by   our 
bankers,  was  quite  an  event. 
[249] 


Anecdotes 


History  of  the  SanFrancisco 


Anecdotes 


Mr.  William  Edwards  was  at  the  time  cashier 
and  paying  teller  of  the  Merchants'  Exchange 
Bank.  One  day  Broker  J.  W.  Brown  called 
and  requested  Edwards  to  certify  a  check  for 
about  $48,000,  as  he  wished  to  take  up  stocks 
on  a  contract  deposited  with  the  Bank  of  Cali- 
fornia, stating  that  he  had  sold  the  stocks, 
would  deliver  them  to  the  purchasers,  and 
deposit  the  checks  he  received  in  a  few  minutes. 
The  check  was  certified,  and,  after  Brown's 
departure,  Manager  Sneath,  who  had  watched 
the  transaction,  objected  to  the  proceeding, 
claiming  that  such  actions  would  break  that  or 
any  other  bank,  especially  as  the  depositor  in 
question,  at  that  time,  had  but  a  small  amount 
to  his  credit,  at  the  bank.  Edwards  explained 
that  he  had  been  pursuing  that  course  for 
years,  and,  if  discontinued,  the  bank  would  lose 
the  accounts  of  the  different  brokers. 

While  the  matter  was  under  discussion  Mr. 
J.  .W.  Brown  re-entered  the  bank,  depositing 
checks  for  a  much  larger  amount  than  he  had 
drawn  on  the  certified  check.  Still  Mr.  Sneath 
was  not  satisfied,  and  the  matter  was  referred 
to  President  Alvinza  Hayward,  who  patiently 
heard  both  sides  of  the  argument;  and  then 
remarked  to  Mr.  Sneath:  "I  think  we  had 
better  leave  all  this  matter  to  Edwards;  he 
seems  to  know  what  he  is  about!" 

A  prominent  business  man  one  day  presented 
[250] 


Stock  and  Exchange  Board 


a  check  for  $1,000  to  Cashier  Edwards,  and 
received  the  money.  In  an  hour  or  so  he  re- 
turned to  the  bank  asserting  that  he  had  been 
underpaid  $20.  After  some  discussion  Edwards 
promised  the  gentleman  to  give  him  $20  in  case 
the  cash  of  the  bank  was  over  that  amount 
when  it  balanced  cash  at  the  close  of  business 
that  day.  When  the  gentleman  called  the  next 
day  he  was  told  the  bank's  cash  was  all  right, 
and,  therefore,  he  must  have  been  paid  the  full 
amount  of  his  check. 

In  cases  of  this  nature,  each  person,  natur- 
ally, feels  that  his  own  story  is  correct,  and 
dissatisfaction  always  arises.  A  few  weeks 
afterwards  the  gentleman  called  at  the  bank, 
and,  with  a  smile  on  his  face,  stated  that  he 
had  been  guilty  of  injustice  towards  Mr.  Ed- 
wards; that  he  had  called  to  express  his  re- 
grets, as  he  had  found  the  $20. 

On  being  asked  to  relate  the  circumstances, 
he  said: 

"It  was  raining  on  the  day  I  cashed  the 
$1,000  check,  and  I  turned  my  breeches  up  at 
the  bottom.  At  my  office  I  must  have  dropped 
the  money  or  a  portion  of  it.  I  placed  my 
trousers  in  my  closet  the  next  morning,  and  did 
not  again  look  at  them  until  this  morning,  when 
I  again  put  them  on,  and,  as  they  were  still 
turned  up  at  the  bottom,  the  minute  I  turned  Anecdotes 
them  down  out  rolled  a  $20  piece." 


History  of  the  SanBrmcisco 


no 

Mr.  D.  O.  Mills  was  always  a  stalwart  finan- 
cial figure  in  California.  He  was  one  of  the 
principal  stockholders  in  the  Union  Mill  and 
Mining  Company,  in  connection  with  Ralston 
and  Sharon.  He  was  president  of  the  Bank  of 
California  at  its  organization  in  June,  1864. 
He  retired  from  this  position  about  1873,  but, 
when  the  bank  was  rehabilitated  in  October, 
1875,  he  was  re-elected  president. 

He  resided  East  since  1879,  and  died  well 
advanced  in  years  at  his  country  residence  of 
Millbrae,  twenty  miles  south  of  San  Francisco, 
January  3,  1910. 


Anecdotes 


ill 

Mr.  Frank  Pausson  is  the  authority  for  the 
following : 

In  a  notion  store,  located  on  Sansome  street, 
near  Bush,  in  1871,  Otto  Bach,  a  clerk,  was 
employed.  He  opened  an  account  with  Edward 
Cahill,  a  broker  of  long  standing,  whose  office 
was  located  on  the  west  side  of  Montgomery 
street,  near  California.  At  that  time  Edward 
Cahill  was  about  forty-five  or  fifty  years  of 
age,  probably  six  feet  two  inches  tall,  his 
mustache  and  hair  becoming  gray,  of  florid 
complexion,  and  always  seen  wearing  a  pair  of 
eye-glasses.  He  had  been  a  broker  in  Virginia 
City,  returning  to  San  Francisco,  and  Joining 
[252] 


vfttnt*- 


WAMJ.J 


MI  aaau 


8MOITDA8MAHT   XDOT3 


ry  (/the  Smfhmclseo 


no 

Mr.  D.  O.  Mills  was  always  a  stalwart  i" 
1  figure  in  California*    He  was  one  of  the 
principal  stockholders  in  the  Union  Mill  and 
Mining  Company,  in  connection  with  Ralston 
and  Sharon.  He  was  president  of  the  Bar 

e.   1864. 
. 

.en  the 
is  was  i 


in 

Mr.  Frank  Pausson  is  the  authority  ior  tin 
following : 

In  a  notion  store,  located  on  Sansome  street 
X7i,  Otto  Bach,  a  clerk. -wai 


age,   prcba:  Mis 

mustache  and  ng  gray,  of  florid 

complexion,  and  always  seen  wearing  a  par 
eye-glasses.  He  had  been  a  broker  in  Virgin 

-.*•  J  4-n    Qo        T?T-a«riJe<»/*     iv\/\    ft^intno' 

TYPE    OF    CIPHER    TELEGRAMS    USED    IN 
STOCK   TRANSACTIONS 


Ike  Western  Pinion  Sdejrajiit  (Compaun. 


Paejfic  Division. 

^•jBHt^M^m^hS;  '£'.'  J^iTkf'aiilS^itaMU^ 


Stock  and  Exchange  Board 


the  Board  in  1866,  purchasing  the  seat  of  Col. 
Thos.  H.  Holt. 

As  Bach  was  a  clerk,  with  only  a  small  capi- 
tal, his  account  was  not  a  large  one,  and  his 
transactions  were  necessarily  limited.  Enter- 
ing Cahiirs  office  one  day  he  wrote  out  an 
order  to  purchase  10  shares  of  Consolidated 
Virginia,  then  selling  at  $30  a  share.  He  paid 
no  further  attention  to  the  order  that  day,  but 
through  the  mail  next  morning  received  a  no- 
tice from  his  broker  of  the  purchase  of  100 
shares  of  Consolidated  Virginia  at  $30  a  share. 
He  instantly  perceived  that  an  error  had  been 
made,  and  started  for  Cahill's  office  in  a  state 
of  wild  perturbation.  On  the  way  up  town  he 
stopped  at  a  broker's  office,  to  inquire  the  price 
of  the  stock,  and  ascertained  that  it  had  sud- 
denly advanced  to  $50  a  share.  This  advance 
of  $20  a  share  in  the  price  of  the  stock  made 
his  account  perfectly  solid  with  the  broker,  and 
he  assumed  the  purchase  of  the  100  shares.  As 
the  stock  still  advanced  he  held  on  to  his  pur- 
chase, and,  on  eventually  selling,  realized  a 
profit  of  $32,000.  He  then  resigned  his  position 
as  clerk  in  the  notion  store,  left  for  Europe, 
with  his  money,  married,  and  is  now  engaged 
in  the  profitable  business  of  manufacturing 
glassware  somewhere  in  the  vicinity  of  his 
natal  village,  a  very  prominent  man  in  that  Anecdotes 
locality. 

[253] 


History  of  the  Sanfrandsco 


112 

In  the  admirable  map  of  the  Comstock  Lode 
published  by  Mr.  J.  H.  G.  Wolf  the  following 
are  the  names  of  the  mining  companies  located 
in  the  lode  as  they  are  known  in  1908: 

Feet 

Sierra  Nevada    ..................  2600 

Union    ..........................  600 

Mexican    ........................  600 

Ophir  ...........................  675 

Consolidated  Virginia  ...........  1310 

Best  &  Belcher  ..................  536 

Gould  &  Curry  ..................  612-7 

Savage  ..........................  771-2 

Hale  &  Norcross  ................  400 

Chollar    .........................  700 

Potosi    ..........................  700 

Bullion    .........................  943-8 

Exchequer    ......................  400 

Alpha    ..........................  306-4 

Imperial    ........................  457 

Challenge     1 

Confidence    J  ' 

Yellow  Jacket  ...................  957-1 

Kentuck    ........................     93-4 

Crown  Point  ....................  541-9 

Belcher   .........................  1008-4 

Seg.  Belcher   ....................  160 

Overman    .......................  1200 

Caledonia    .......................  1768 


22g 


Anecdotes         The  following  are  the  names  of  many  non- 
members  who  bought  and  sold  stocks  on  the 

[254] 


Stock  and  Exchange  Board 


street  in  early  days 
gregated : 
Benrimo,  Joseph 
Bogart,  O.  H. 

Bogart,  

Barrell,  Sam 
Bradley,  John 
Borland,  Archie 
Brackett,  George 
Baker,  A.  S. 
Brown,  Alex 
Buchanan,  Joseph 
Baldwin,  E.  J. 
Cohen,  Jacob 
Carleton,  C.  E. 

Cohen,  

Collins,  R.  N. 
Cavallier,  Jules 
Duncan,  Willie 
Drexler,  L.  P. 
De  Grear,  Seth 
Dore,  Benj. 
Evertson,  Evert 
Elias,  Philip 
Fernald,  Joseph 
Fay,  Phil 
Fay,  David 
Fay,  Jack 
Frank,  Gustave 
Folsom,  Geo.  H. 
Folsom,  D.  H. 
Franks,  Sam 
Forbes,  A.  P. 
Fleishacker,  A. 
Farrell,  Jack 


wherever  the  brokers  con- 
Hunt,  Sam 
Hemme,  A. 
Jacobs,  Louis 
Kellogg,  C.  W. 
Kent,  R.  F. 
Kaplan,  Louis 
Kitz,  Philip 

Kase, 

Kramer,  A. 
Kearney,  Dennis 
Levy,  Jake 
Low,  Charles  L. 
Lande,  Ben 
Landers,  John 
Lubeck,  S. 
Myers,  Henry 
Minear,  A.  P. 
Miller,  M.  B. 
Moroney,  Paul 
Noyes,  Charles 
Pearson,  John  W. 
Phebey,  Thomas 
Price,  Benj. 
Pinney,  Geo.  W. 
Pichoir,  H. 

Roberts, 

Roberts,  Steve 
Reed,  Charles 
Reinhart,  Simon 
Roberts,  Geo.  D. 
Rogers,  Ford 
Rogers,  George 
Schmidt,  John 

[255] 


Anecdotes 


History  of  the,  SanFraneisco 


Anecdotes 


Fox,  M.  W. 
Fitch,  H.  S. 
Gallagher,  Thomas 
Goldsmidt,  Anson 
Golien,  Walter 
Gashwiler,  John  W. 
Graves,  Robert  N. 
Gray,  John 
Guptil,  D.  W. 
Hawkins,  James 
Higgins,  Robert 
Haas,  Sol 
Hill,  J.  Bryant 
Hughes,  E.  A.  N. 
Harpending,  A. 
Higgins,  Charles 
Horn,  Bob 
Harvey,  Charles  C. 


Sargent,  Bailie 
Sparboro,  B. 

Spinney,  

Sanborn,  T.  C. 
Solomon,  N. 
Schultz,  Geo. 
Smith,  W.  Jay 
Snowball,  R.  Y. 
Sayre,  J.  H. 

Snodgrass,  

Townsend,  M.  D 
Tinghman,  John 
Uhler,  J.  Clem 
Williams,  J.  H. 
Webber,  George 
Weil,  Leon 
Weinshank,  


114 


E.  J.  Baldwin — known  all  over  the  Coast  as 
"Lucky  Baldwin" — came  to  California  early  in 
life.  He  was  engaged  in  business  in  San  Fran- 
cisco in  the  fifties,  then  in  Virginia  City,  Ne- 
vada, returning  afterwards  to  San  Francisco, 
and  in  the  early  days  of  the  Stock  Board  had 
an  office  on  Commercial  street,  near  Kearny. 

Prior  to  the  Civil  War,  extremely  wealthy 
men  in  California  were  not  so  numerous  as  at 
the  present  time,  and  one  could  name  our  mil- 
lionaires on  his  finger  ends.  Men  possessing 
$100,000  were  considered  well  off,  while  a 
$500,000  citizen  was  always  addressed  with  the 

[256] 


Stock  and  Exchange  Board 


prefix  of  "Mister,"  and  when  one  of  this  latter 
class  would  return  from  an  European  trip,  it 
was  not  unusual  to  call  him  a  "Hadji." 

There  were  many  wealthy  men  in  the  older 
States,  on  the  Atlantic  border  both  north  and 
south  of  Mason  and  Dixon's  line.  After  the 
inauguration  of  Mr.  Lincoln  in  1861,  when  Mr. 
William  Astor,  of  New  York  City,  then  the 
wealthiest  man  in  America,  tendered  the 
Government  a  loan  of  $3,000,000  in  gold,  it  was 
considered  a  very  great  event.  When  the 
Panama  steamer  brought  us  the  news  thirty 
days  after  the  event,  I  am  sure  all  Californians, 
on  reading  of  the  offer,  laid  down  their  news- 
papers with  the  exclamation:  "Three  Millions 
of  Dollars!"  It  was  the  wonder  that  any  man 
in  the  country  had  that  amount  of  money  un- 
employed, and  all  rejoiced  in  the  patriotism  of 
Mr.  Astor. 

But  the  subject  of  our  sketch  was  a  com- 
paratively poor  man  at  the  time.  His  great 
success  in  stock  speculation  had  not  yet  ar- 
rived. When  one  reflects  that  in  the  year  1825, 
about  which  date  many  of  our  successful  stock 
operators  were  born,  the  Constitution  of  the 
United  States  had  been  adopted  only  thirty- 
six  years,  and  was  still  an  untried  experiment ; 
that  the  country  west  of  the  Mississippi  was 
yet  an  unsettled  waste,  filled  with  tribes  of  Anecdotes 
ferocious,  roaming  Indians,  and  that  our  popu- 
[257] 


History  of  the  Santraneisco 


Anecdotes 


lation  was  barely  20,000,000,  it  is  evident  that 
wealth  was  not  yet  as  widely  enjoyed  as  at  the 
present  period. 

Mr.  Baldwin,  after  his  arrival  here,  had  to 
commence  at  the  bottom  of  the  ladder.  When 
we  first  knew  him  on  the  street,  he  was  tall, 
erect,  with  black  hair  and  beard,  always 
dressed  in  a  black  suit  of  clothes,  Prince  Albert 
coat  and  silk  hat;  an  apparel  generally  worn 
by  all  gentlemen  of  that  date.  Shoes  then  were 
an  exception;  almost  everyone  wore  high  top 
boots. 

Mr.  E.  J.  White,  who  was  quite  intimate  with 
Baldwin,  is  authority  for  the  following  state- 
ments : 

In  the  early  50*8,  when  the  Government  built 
Fort  Winfield  Scott,  at  Fort  Point,  Baldwin 
assisted  materially  in  its  construction,  having 
a  contract  to  furnish  bricks  for  the  new  fort, 
which  was  considered  a  twin  of  the  celebrated 
Fort  Sumter,  guarding  Charleston  Harbor, 
South  Carolina. 

Subsequent  to  this,  Baldwin  lost  what  for- 
tune he  had  gained  and  with  many  others  left 
for  Virginia  City,  Nevada,  where  the  Comstock 
Lode  was  producing  rich  ore.  Having  re- 
cuperated financially  he  returned  to  San  Fran- 
cisco, with  his  office  on  Commercial  street, 
above  Kearny.  The  knowledge  gained  by  him 
in  the  mines  on  the  Comstock  was  invaluable 

[258] 


Stock  and  Exchange  Board 


at  this  time.  He  became  interested  in  the  Ophir 
mine,  and  rapidly  accumulated  a  fortune,  which 
enabled  him  to  become  a  large  holder  of  Con- 
solidated Virginia  stock.  The  increase  in  the 
capital  stock  of  the  Consolidated  Virginia, 
with  the  stock  dividend  of  California,  declared 
by  the  former  company,  gave  Mr.  Baldwin  a 
large  holding  in  these  stocks,  which  advanced 
to  $800  a  share  January,  1875,  all  of  which 
tended  to  make  Mr.  Baldwin  one  of  the 
wealthiest  of  Californians. 

Mr.  White  relates  the  following  incident  to 
illustrate  how  the  nickname  "Lucky"  was 
forced  on  Mr.  Baldwin: 

Baldwin  had  to  his  credit  the  sum  of 
$40,000  with  the  banking  house  of  Workman 
&  Temple,  in  Los  Angeles.  On  the  suspension 
of  that  firm  he  was  compelled  to  accept  for  his 
$40,000  a  deed  to  an  extensive  tract  of  land. 

The  railroad,  in  1875,  had  only  reached 
Bakersfield,  and  land  was  of  little  value  in 
Southern  California.  No  sales  could  be  made 
of  this  extensive  tract  of  land,  and  Baldwin 
was  forced  to  hold  his  new  acquisition.  In 
time  the  railroad  was  extended  to  his  vicinity. 
Land  became  in  demand  and  advanced  to  $100 
— $200  an  acre,  and  in  the  end  the  ranch,  since 
known  as  the  Santa  Anita  Ranch,  became  one 
of  the  most  valuable  in  the  State,  its  esti-  Anecdotes 
mated  value  today  footing  up  into  the  millions. 
[259] 


SUPERSTITIONS 


History  of  the  SanFrandsco 
Stock  and  Exchange  Board 


CHAPTER  XIII 
SUPERSTITIONS 


PECULATORS  are  the 
most  superstitious  race  on 
this  great,  green  earth. 
Although  bent  and  deter- 
mined on  some  moneyed 
transaction,  either  to  buy 
or  sell,  some  slight  incident 
will  change  their  minds  in 
an  instant.  They  may  sell 
where  they  intended  to  buy.  Many  will  carry 
a  lucky  coin,  never  to  be  parted  with.  A 
rabbit's  foot  had  its  merit  with  some,  always 
hidden  away  in  a  secret  pocket. 


Budd  had  365  suits  of  clothes,  one  for  each 
day  in  the  year.  He  came  in  the  Board  one 
day  wearing  a  new  pair  of  light-colored  Scotch 
pants,  checkered  with  a  black  streak,  as  wide 
as  the  rails  on  California  street.  Everything  he 
did  that  day  went  against  him.  He  lost,  no 
matter  which  way  he  acted.  He  went  home,  Superstitions 
threw  off  the  pants  and  never  would  wear 

[263] 


History  of  the  Sanfrancisco 


them  again;  they  cost  him  too  much.  They 
say  he  entered  the  Board  room  by  the  back 
entrance  one  day,  and  again  everything  went 
against  him.  Nothing  in  the  world  could  in- 
duce him  thereafter  to  enter  any  other  way 
than  by  the  front  door. 


One  of  the  finest  fellows  in  the  Board,  and 
who  had  amassed  quite  a  fortune,  had  the 
peculiar  idea  that  a  light  pair  of  pants  always 
brought  good  fortune  to  him.  One  day,  when 
business  was  dull  and  Consolidated  Virginia 
looked  about  right  for  a  chip,  I  thought  it  best 
to  take  in  what  there  was  for  sale.  I  bought 

at  $59%,  $5954  anc*  $59?4»  anc*  was  st^l  bidding 
when  a  familiar  voice  at  my  back  said:  "Clear 
the  floor  at  $60,  and  I  will  go  in  with  you." 
Out  of  the  corner  of  my  eye  I  could  see  that  it 
was  Horace,  and  better  still,  he  had  donned 
the  light  pants,  and  Consolidated  Virginia  was 
$60  bid  in  a  minute.  We  had  turkey  for  dinner 
for  a  month. 


A  prominent  member  saw  a  spider  on  the 
wall  one  morning.  Nothing  could  induce  him  to 
buy  or  sell  anything  that  day. 


One  day  when  Jacket  was  called,  Keene  was 

Superstitions     sitting  listlessly   in   his   seat,   when   all   of  a 

sudden  he  emerged  into  the  aisle,  and  bidding 

[264] 


Stock  and  Exchange  Board 


for  Jacket,  rushed  from  the  front  door  all  the 
way  up  the  aisle  to  the  rostrum,  and  back 
again,  still  buying,  still  bidding,  and  carried 
the  stock  from  $58  to  about  $65.  He  became 
red  in  the  face  with  exertion — still  redder,  and 
finally,  a  bluish  red,  like  apoplexy,  frightening 
all  of  us.  We  expected  him  to  drop  on  the 
floor.  Finally  stopping,  his  face  resumed  its 
natural  color,  and  when  business  would  allow 
it,  we  crowded  around  him,  expostulating  with 
him  on  his  actions,  claiming  it  would  kill  him 
some  day,  all  of  us  volunteering  at  any  time  to 
buy  stock  for  him.  He  was  calm  now,  and 
putting  his  hand  over  his  heart,  said  that  when- 
ever he  felt  a  peculiar  sensation  there,  should 
he  follow  his  inclinations,  all  would  be  well; 
if  not,  he  would  lose  money.  He  was  short  on 
Jacket,  had  that  peculiar  feeling,  acted  on  it, 
filled  his  shorts  and  was  now  long.  As  it  was 
reported  that  he  had  made  $500,000  at  that 
time,  and  principally  in  Jacket,  perhaps  he  was 
right. 


A  prominent  broker  had  traded  all  day  on 
the  wrong  side  of  the  market.  Arriving  at  home 
in  anything  but  good  spirits,  he  ascertained 
that  some  kind  friend  had  presented  his  family 
with  a  dog.    "Well,  of  course,"  he  said,  "that 
accounts  for  it."   One  kick  sent  the  dog  out  of     Superstitions 
the  front  door.   No  more  dogs  for  him. 
[265] 


'History  of  the  Sanfrandsco 


A  Mr.  Witcher  Jones  had  5000  Bullion  stock, 
pronounced  sometimes  in  jest  as  the  French- 
men pronounce  their  famous  broth,  bouillion. 
One  day  he  found  his  French  cook  had  a  num- 
ber of  plates  in  the  kitchen  covered  with 
grease.  "Why,  Frenchy,"  he  said,  "what's 
that?"  "That,  why,  that's  bouillion,"  was  the 
answer.  "Well,"  said  Jones,  "if  Bouillion  is  as 
thick  as  that  on  the  outside,  I  am  going  to 
sell  mine  now,"  and  he  did. 

Jones  had  been  a  soldier,  on  the  Confederate 
side,  in  the  late  unpleasantness,  serving  with 
General  Morgan  in  his  cavalry  troop.  He  came 
to  the  Board  one  morning  and  asked  a  broker 
if  he  could  sell  2000  California.  "Yes,"  said  the 
broker,  "but  what's  up,  anything  wrong?" 
"No,"  said  Jones,  "but  I  had  a  dream  last  night. 
Dreamt  I  was  with  Morgan  again,  and  the 
Yanks  surprised  us,  and  we  all  lit  out  as  fast 
as  we  could.  I  found  I  was  on  my  horse  all 
right,  running  for  dear  life,  but  my  face  was 
towards  the  horse's  tail,  and  when  I  woke  up, 
made  up  my  mind  not  to  be  long  on  California 
and  riding  a  runaway  horse  with  my  face 
towards  his  tail,  all  at  the  same  time." 


When  you  meet  a  cross-eyed  man,  looking 
hard  at  you,  and  you  are  certain  it  is  you  he  is 
Superstitions     staring  at,  you  must  instantly  go  out  of  the 
Board  and  do  nothing  that  day. 
[266] 


Stock  and  Exchange  Board 


Lots  of  operators  will  not  trade  in  the  month 
of  October;  why? 


In  early  days  in  Virginia  City  the  majority 
waited  until  the  first  snow  fell  before  they 
bought  stocks. 


Should  a  black  cat  whine  at  your  front  door, 
take  the  cat  in  right  away,  and  if  it  purrs  and 
rubs  against  your  leg,  let  us  know  what  you 
buy  that  day  and  we  will  all  follow  you. 


The  greatest  and  most  liberal  of  all  opera- 
tors was  strongly  impressed  with  the  idea  that 
on  getting  out  of  bed  in  the  morning,  should 
his  right  foot  touch  the  floor  first,  everything 
would  be  well.  Should  he,  by  any  inadvertence, 
be  so  unfortunate  as  to  touch  the  floor  with 
the  left  foot  first,  he  would  look  out  for  squalls 
all  day  long. 


The  dreams  of  one  of  the  greatest  operators 
on  the  Board,  never  a  member,  always  affected 
his  transactions.  His  dream  one  night  was  that, 
in  company  with  a  friend,  they  came  to  a  clear, 
beautiful  stream,  the  friend  deliberately  stoop- 
ing, and,  by  stirring  at  the  bottom,  made  the 
stream  muddy.  An  important  transaction 
awaited  the  operator  that  morning  when  he  Superstitions 
arrived  at  his  office.  On  account  of  the  dream, 
[267] 


History  of  the,  SanFrancisco 


he  deferred  action  until  the  next  day,  and  in 
narrating  the  circumstance  stated  that  by  so 
doing  he  saved  $200,000. 


It  is  unnecessary  to  state  the  feeling  in  the 
minds  of  thousands,  arising  either  from  policy 
or  superstition,  never  to  cross  a  funeral  pro- 
cession, but  to  await  patiently  until  the  last 
carriage  has  passed.  This  holds  good  with 
some  brokers. 


Superstitions 


[268] 


NATIVE   SONS 


History  of  the  Sanlrandsco 
Stock  and  Exchange  Board 


CHAPTER  XIV 
NATIVE    SONS 


NUMBER  of  our  members 
have  joined  the  order  of  the 
Native  Sons  of  the  Golden 
West,  and  as  years  roll  on 
many  of  our  younger  mem- 
bers will  join  this  mag- 
nificent order.  My  step- 
father, General  A.M.  Winn, 
the  founder  of  the  order, 
often  spoke  to  me  of  his  intentions,  and  his 
prophecies  concerning  its  future  have  been  am- 
ply verified.  While  the  order  was  still  in  its 
infancy,  Gen.  Winn  came  to  reside  with  me  at 
my  home  in  Sonoma  Valley.  Sitting  on  our 
porch  on  long  summer  evenings  he  would 
speak  with  enthusiasm  of  the  future  of  this 
order.  Unfortunately,  many  of  us  who  were 
children  in  California  twenty-five  years  prior 
to  its  organization,  cannot  become  members, 
leaving  that  privilege  to  our  descendants. 

The   Stock   Board  should  be  looked  upon 
with  interest  by  the  Native  Sons,  as  it  is  one 
[271] 


Native  Sons 


History  of  the  SanTrancisco 


1  of  the  oldest  business  institutions  in  the  State. 
It  is  closely  interwoven  with  actual  mining, 
and  the  fathers  and  grandfathers  of  many 
Native  Sons,  at  some  time  in  their  lives,  must 
have  been  connected  with  mining. 

General  M.  G.  Vallejo  was  probably  the 
oldest  member  of  the  order.  He  has  often  told 
me  that  in  early  days  he  could  readily  per- 
ceive that  California  must  fall  into  the  hands 
of  England,  Russia  or  the  United  States.  His 
sympathies  were  always  with  our  country  and 
his  surrender  at  Sonoma  was  voluntary  and 
acceptable  to  him. 

He  always  claimed  that  the  adobe  buildings, 
and  land  at  the  Presidio,  were  sold  at  auction, 
before  the  advent  of  the  American  forces,  the 
dwellings  there  being  private  property,  the 
General  himself  having  purchased  the  land 
west  of  the  dwellings,  including  what  is  now 
Fort  Point,  and  some  springs  of  water  in  the 
hills  adjacent. 

At  the  request  of  General  Vallejo  I  once 
submitted  this  claim  to  a  legal  firm,  hoping  to 
obtain  something  for  him  in  his  old  age.  But 
the  opinion  rendered  was,  that  the  land  had 
been  in  possession  of  the  Government  for  so 
many  years,  without  the  claim  having  been 
presented,  that  the  wisest  course  to  pursue  was 
Native  Sons  to  submit  it  to  the  generosity  of  Congress. 

[272] 


LATER  HISTORY  OF  THE  BOARD 


History  of  the  SanFrancisco 
Stock  and  Exchange  Board 


CHAPTER  XV 
LATER   HISTORY   OF  THE   BOARD 


HE  earlier  history  of  the 
Board  has,  we  believe,  been 
fairly  covered,  but  many 
incidents  of  interest  may 
be  included  in  a  chrono- 
logical recital,  and  they  are 
here  given: 

January,    1876,   the    fol- 
lowing were  our  officers: 

President John  W.  Coleman; 

Vice-President C.  W.  Bonynge; 

Chairman B.  H.  Coit; 

Secretary Walter  Turnbull. 

Mr.  Franklin  Lawton,  who  had  been  the 
secretary  continuously  from  the  organization 
of  the  Board,  declined  to  serve  further. 

Samuel  P.  Walker  was  elected  sergeant-at- 
arms.  He  was  known  as  the  only  male  child 
born  in  the  White  House. 

Walter  Roach  and  Bernard  Myers  were 
assistants. 

February  2,  1876,  E.  J.  de  Santa  Marina 
[275] 


Later  History 
of  the  Board 


History  of  the  Sanfrandsco 


Later  History 
of  the  Board 


retired  from  the  great  firm  of  Glazier  &  Co. 
and  Meyer  Ehrlich  succeeded  him. 

March,  1876.  Plenty  of  money  in  our 
treasury.  The  dividends  paid  by  the  Board 
were  as  follows: 

March  16,  1876 $  200; 

April,  1876 150; 

Jan.  24,  1878 500; 

Oct.          7,  1879 100; 

Dec.  15,  1881 100; 

Aug.,  1903 3000; 

1903 400;— $4450. 

April  7,  1876,  Mark  L.  McDonald  paid 
$40,000  for  a  seat,  much  to  our  satisfaction.  He 
bought  it  for  Mr.  William  Macintosh. 

April  28,  1876,  Dom  Pedro,  Emperor  of 
Brazil,  visited  the  Board. 

On  the  isth  of  April,  1876,  the  number 
of  shares  of  Consolidated  Imperial  was  in- 
creased to  500,000,  the  following  companies 
being  absorbed  by  the  new  corporation: 

Imperial  Silver  Mining  Company, 
Empire, 

Consolidated  Gold  Hill  Quartz, 
Eclipse,  Winters  and  Plato, 
Gold  Hill  Mining  Company, 
French  Gold  Hill  Mining  Company, 
Bacon  Mill  &  Mining  Company, 
Bowers  Mining  Company. 

On  the  23d  of  February,  1877,  the  fluctua- 

[276] 


3HT  gO  H3SM3M  YJHA3  MA  ,3TIHW  .1  .3 

QHAO3 


tory  (ftheScmthincisco 


*  retired  from  the  great  firm  of  Glazier  &  Co.  ^* 
and  Meyer  Ehrlich  succeeded  him. 

March,  i&j6.  Plenty  of  money  in  our  ^ 
treasury.  The  dividends  paid  by  the  Board  « 
were  as  follows: 


March    16,  1876... 


476,  Mark  L.  McDonald  paid 
$40,000  for  a  seat,  much  to  our  satisfaction.  He 
bought  it  for  Mr.  William  Macintosh. 

April  28,  1876,  Dom  Pedro,  Emperor  of 
Brazil,  visited  the  Board. 

On  the  1 3th  of  April,  1876,  the  number 
of  shares  of  Consolidated  Imperial  was  in- 
creased to  500,000,  the  following  companies 
beim  on: 

*er  Mint.  -ay, 


French  t 


any, 


Bacon  Mill  &  Mining  Company, 
Bowers  Mining  Company. 

E.  J.  WHITE,  AN  EARLY  MEMBER  OF  THI 
BOARD 


3HT  ^O  5I3SM3M  YJHA3  MA  ,3TIHW  .1  .3 

QHAOa 


Stock  and Exchange Board 


tions  in  all  stocks  above  $25  was  changed  to 
*4  of  a  dollar. 

On  the  i8th  day  of  July,  1877,  occurred  the 
funeral  of  William  Burling,  an  old  member 
and  ex-president. 

October  ist,  1877,  the  first  session  in  our 
own  building  on  Pine  street. 

1878.  During  this  year  occurred  the  great 
Sierra  Nevada  and  Union  deal.  In  sinking  the 
Sierra  Nevada  shaft,  about  the  2300  foot  level, 
a  fine  bunch  of  ore  was  encountered  and  work 
was  stopped.  Mr.  John  Skae,  supposed  to  be 
in  control  of  the  Sierra  Nevada  mine,  was  East 
at  the  time.  His  brokers,  Glazier  &  Co.,  ob- 
viously notified  him  of  the  strike,  and  it  is 
understood  they  were  authorized  to  buy  the 
stock.  It  was  quite  low  at  the  time  and  jumped 
one  morning  from  $5  to  $7  on  the  call,  and, 
with  various  ups  and  downs,  finally  reached 
$280  a  share.  The  Union  Consolidated,  the 
adjoining  mine,  sympathized  with  its  neighbor, 
reaching  $200  a  share,  at  which  figure  Mr.  J.  C. 
Flood  purchased  of  Robert  Sherwood  5000 
shares,  the  transaction  amounting  to  $1,000,000. 

By  the  time  Skae  had  arrived  in  San  Fran- 
cisco,  Glazier  &   Co.   had  purchased  enough 
Sierra  Nevada  stock  to  obtain  control  for  their 
client.    E.  P.  Peckham  bought  all  the  Sierra     Later  History 
Nevada  for  sale  at  a  certain  session,  raising  the     of  the  Board 
price  from  $21  to  $28.  The  stock  was  allowed 
[277] 


History  of  the  Sanfrandsco 


Later  History 
of  the  Board 


to  drop  back  again  to  $21,  and  then  rallied 
steadily  to  $90.    On  an  order  to  sell,  James    ( 
Freeborn's  transactions  broke  the  price  from  ^ 
$90  to  $45  in  one  Board.  Again  it  rallied,  and    « 
continued  rather  steadily  until  it  reached  $280. 

Peckham  asked  one  day:  "What's  bid  for 
1000  Sierra  Nevada?"  "$250,"  was  the  answer 
of  one  broker.  "Sold,"  said  Peckham,  and  down 
went  the  stock.  After  a  good  break  one  day, 
James  C.  Flood,  at  lunch  at  the  old  Pacific 
Club,  was  addressed  in  this  manner :  "Quite  a 
break  in  the  market  today,  Mr.  Flood."  His 
answer,  dropping  knife  and  fork,  was:  "There 
are  not  quite  so  many  millionaires  on  the  street 
as  there  were  yesterday." 

We  had  a  great  market  and  plenty  of  com- 
missions in  this  Sierra  Nevada  deal. 

Following  on  the  heels  of  the  development 
in  California  and  Consolidated  Virginia,  it  was 
thought,  of  course,  to  be  another  great  develop- 
ment, the  public  being  ripe  for  a  market,  every- 
thing soaring  to  high  prices.  Mexican  was 
around  $13  for  a  long  time,  and  then  with  a 
hop,  skip  and  a  jump  became  very  active  and 
reached  $100.  All  the  stocks  on  the  Comstock 
Lode  sympathized  and  all  advanced.  Com- 
missions were  fine. 

And  just  think  of  it.  All  this  excitement  was 
caused  by  that  little  lens  of  ore  found  in  the 
Sierra  Nevada  shaft,  so  small  it  was  after- 

[278] 


Stock  and  Exchange  Board 


wards  called  a  "coyote  hole,"  for  so  soon  as 
they  re-commenced  work  it  proved  to  be  only 
a  small  bunch.  Further  developments  failed 
to  discover  any  more  ore.  Gradually  prices 
weakened,  and  finally  went  all  to  pieces  again. 


Later  History 
of  the  Board 


[279] 


THE  RESUMPTION  OF  SPECIE 
PAYMENTS 


History  of  the  Santraneisco 
Stock  and  Exchange Board 


CHAPTER  XVI 

THE   RESUMPTION   OF   SPECIE 
PAYMENTS 

ERSONS  of  my  own  age 
will  readily  understand  the 
above  caption,  but  my  effort 
is  to  interest  younger  men 
also.  A  very  dear  friend, 
much  younger  than  myself, 
asked  me:  "What  do  you 
mean  by  specie  payments?" 
I  then  understood  it  was 
wise  to  thoroughly  explain  what  might  pos- 
sibly be  ambiguous  to  younger  men.  I  mean 
this: 

When  the  Civil  War  broke  out  in  1861,  gold 
was  the  medium  of  exchange  throughout  the 
country.  The  expense  of  the  Government  in 
equipping  armies,  building  war  vessels,  paying 
the  soldiers,  and  innumerable  other  expenses 
soon  exhausted  the  gold  in  the  treasury,  and 
money  had  to  be  raised.  The  duties  on  imports 
were  to  be  paid  in  gold,  but  were  not  sufficient 
to  pay  all  expenses,  and  the  Government  was 
compelled  to  issue  paper  money.  We  called 
[283] 


Resumption 
of  Specie 
Payments 


History  of  the  SanFrandsco 


Resumption 

of  Specie 

Payments 


them  greenbacks  at  first,  as  they  were  printed 
in  green  colors.  They  were  made  a  legal  tender 
for  all  debts.  The  first  Continental  Congress 
adopted  a  similar  course  in  the  Revolutionary 
War  from  1775  to  1782,  but  in  that  great  strug- 
gle the  Government  paper  became  absolutely 
worthless.  The  early  successes  of  the  Con- 
federate armies  in  the  Civil  War,  depredations 
of  Southern  privateers  on  the  ocean,  and  the 
uncertainty  of  the  success  of  the  Lincoln  ad- 
ministration, from  1 86 1  to  1865,  so  affected  the 
legal  tender  issue,  that  it  depreciated  in  value, 
and  gold  coin,  a  commodity  no  longer  in 
general  circulation  in  the  East,  became  very 
scarce,  enhancing  greatly  in  value. 

The  only  gold  payments  made  by  the  Gov- 
ernment were  for  the  interest  on  its  bonds, 
which  it  was  compelled  to  sell  mostly  in 
Europe,  and,  to  a  large  extent,  to  the  German 
nation.  The  Government  paid  an  interest  as 
high  as  7.20  per  cent  per  annum  on  its  bonds — 
equal  to  about  2c  a  day  on  each  one  hundred 
dollars  borrowed.  We  were  isolated  in  Cali- 
fornia. There  being  no  railroad,  it  took  30 
days  for  news  to  come  from  the  Eastern  States, 
via  Panama.  Our  business  men,  influenced  by 
Banker  William  C.  Ralston,  determined  to 
transact  all  of  our  business  in  gold  as  hereto- 
fore— and  the  California  Legislature  passed 
laws  to  that  effect. 

[284] 


.T33HT8    3VH1    MO    MOO5I    CHAOS 


of  the  SanFrandsco 


nbacks  at  first,  as  they  were  printed 
»n  colors.  They  were  made  a  legal  tender 
for  all  debts.    The  first  Continental  Congress 
adopted  a  similar  course  in  the  Revolutionary 
from  1775  to  1782,  but  in  that  great  strug- 
gle the  Government  paper  became  absolutely 
worthless.    7  Con- 

federate a 
of  Southern 


ation  in  the  East,  became  very 
nhancing  greatly  in  value. 
The  only  gold  payments  made  by  the  Gov- 
ernment were  for  the  interest  on  its  bonds, 
which   it   was    compelled   to   sell   mostly    in 
Europe,  and,  to  a  large  extent,  to  the  German 
The  Government  paid  an  inter 


Banker   William   C  .  ied   to 

*act  all  of  our  business  in  gold  as  hereto- 

d   the   California   Legislature   passed 

BOARD    ROOM    ON    PINE    STREET,    1904 


Stock  and  Exchange  Board 


And  so  arose  the  singular  circumstance  that 
in  California  we  paid  all  of  our  bills  in  gold, 
the  banks  cashing  checks,  and  the  merchants 
keeping  bank  accounts  in  gold,  while  in  the 
East  legal  tenders  were  used.  The  paper 
money  of  the  Government  depreciated  so  low 
that  it  sold  at  35C  on  this  Coast.  There  were 
money  brokers  engaged  solely  in  the  business 
of  exchanging  these  legal  tenders  for  gold.  A 
patriotic  man,  feeling  that  the  Federal  Gov- 
ernment would  be  successful,  would  ask  a 
broker  the  price  of  $1,000  in  greenbacks.  The 
answer  would  be  $350  to  $400  in  gold,  which 
he  would  pay,  and  place  it  in  a  small  box, 
with  other  securities,  left  with  his  banker.  All 
of  the  banks  had  shelves  in  their  vaults,  for 
the  accommodation  of  these  tin  boxes,  belong- 
ing to  their  depositors.  The  present  safe  de- 
posit vaults  were  not  known.  The  greenbacks 
might  possibly  remain  there  for  years. 

The  Federal  successes  in  1863,  at  Vicks- 
burg  and  Gettysburg,  with  General  Sherman's 
March  to  the  Sea  in  1864,  foretold  the  success 
of  the  Government,  and  the  price  of  Govern- 
ment paper  rose  in  value,  and,  finally,  with 
General  Grant's  victory  at  Appomatox,  and  the 
end  of  the  war,  the  paper  money  here  ad- 
vanced beyond  6oc  on  the  dollar.  All  the 
Government  employees  on  this  Coast,  includ- 
ing those  serving  here  in  the  army  and  navy, 
[285] 


Resumption 
of  Specie 
Payments 


History  of  the  SanFraneisco 


Resumption 
of  Specie 
Payments 


were  paid  in  Government  paper,  a  great  hard- 
ship to  them,  as,  in  order  to  pay  their  house- 
hold expenses,  they  were  compelled  to  ex- 
change it  for  gold  at  a  great  loss.  It  would  be 
a  happy  day  for  them  when  their  pay  in  cur- 
rency would  have  so  increased  in  value  as  to 
be  equal  to  gold — when  the  Government  would 
resume  the  custom,  in  vogue  before  the  war, 
of  paying  all  of  its  debts  in  specie — that  is 
in  gold. 

The  gold  is  specie;  the  paper  money  is 
currency. 

The  resumption  of  specie  payments  would 
mean  that  the  Government  would  pay  specie — 
that  is  gold — or  its  equivalent,  for  any  and  all 
of  its  debts. 

On  a  visit  East  in  1876  I  found  young  rela- 
tives who  had  never  seen  gold,  and  on  being 
shown  a  $20  piece,  looked  at  it  and  handled 
it  as  they  would  those  old,  large  copper  cents 
in  circulation  at  that  time.  I  feel  positive  in 
this  statement  that  if  asked  to  give  a  $20  cur- 
rency bill  for  one  of  those  $20  gold  pieces,  they 
would  have  declined  to  do  so.  To  young  peo- 
ple at  that  time  gold  was  an  unknown  quan- 
tity. So  long  as  gold  was  at  a  premium  in 
New  York,  so  long  as  the  currency — the 
money  of  the  Government — was  at  a  discount 
in  San  Francisco,  just  so  long  were  the 
finances  of  the  country  unsettled. 

[286] 


Stock  and  Exchange  Board 


We  were  now  a  united  nation,  and,  with  the 
addition  of  Alaska,  larger  than  ever,  getting 
richer  every  year,  and,  although  ignorant  of 
the  fact  at  that  time,  we  were  becoming  one 
of  the  great  nations  of  the  world.  Every  one 
felt  the  degradation,  when  the  fact  was  brought 
up  that  our  Government  money  was  below 
par — that  gold  was  at  a  premium  in  the  finan- 
cial center,  New  York. 

As  the  year  1878  was  closing  it  was  rumored, 
and  the  papers  chronicled  the  fact,  that  an 
effort  would  be  made  on  the  first  of  the  year 
to  bring  gold  and  currency  to  par.  In  the 
East  gold  commenced  to  decline;  on  the  Pa- 
cific Coast  currency  advanced.  Finally,  John 
Sherman,  the  Secretary  of  the  Treasury,  issued 
an  order  to  Assistant  Treasurers  throughout 
the  United  States,  that  on  the  first  of  January, 
1879,  they  should  cash  all  currency  notes  pre- 
sented in  gold.  Every  banker  in  the  United 
States  determined  to  end  the  suspense  and  to 
help  the  Secretary  to  his  utmost  power,  and 
every  loyal  citizen,  every  merchant,  every 
anybody  in  this  whole  country  resolved  to  do 
his  utmost  to  bring  about  the  desired  event. 

There  was  a  Gold  Board  in  New  York.  So 
long  as  gold  was  at  a  premium  so  long  would 
that  Gold  Board  continue.  This  order  of 
Secretary  Sherman  foretold  its  discontinuance. 
$o  strong  was  the  loyal  feeling  among  all 
[287] 


Resumption 
of  Specie 
Payments 


"L\ 


History  of  the  SanFrancisco 


Resumption 
of  Specie 
Payments 


classes  that  as  the  first  of  January  approached 
gold  continually  receded.  On  the  last  day  it 
declined  from  100^,  100%,  100^  and  all  the 
intermediate  fractions  of  these  quotations, 
until,  eventually,  with  a  rush,  gold  was  sold  at 
par,  was  offered  at  par,  kept  at  par,  and,  finally, 
the  chairman  dropped  his  gavel — the  Gold 
Board  was  closed,  and,  God  willing,  let  us 
hope  it  will  never  be  in  existence  again. 

The  Assistant  Treasurer  in  New  York  paid 
out  about  $2,000,000  in  gold  in  exchange  for 
currency,  when  the  run  ceased.  It  is  so  strange 
to  us  Californians  that  Eastern  people  prefer 
the  currency  to  gold.  They  can  carry  millions 
of  it  in  their  vest  pocket.  For  years,  subse- 
quent to  the  resumption  of  specie  payments, 
on  this  Coast  when  one  was  paid  in  currency 
it  was  passed  on  as  speedily  as  possible — got- 
ten rid  of — and  this  feeling  exists  to  some 
slight  extent  today.  However,  let  us  chroni- 
cle the  fact  right  here,  that  the  gold  medium 
on  this  Coast  was  of  great  assistance  to  the 
Government  all  through  the  war  and  after- 
ward. 

We  saw  very  little  currency  on  this  Coast 
except  to  pay  Government  taxes.  It  had  sold 
as  low  as  35  cents  during  the  war.  All  of  our 
transactions  were  made  in  gold.  Brokers  never 
received  currency  for  transactions.  As  it  con- 
tinually advanced  in  value  we  rejoiced.  When 
[288] 


Stock  and  Exchange  Board 


the  Secretary  issued  his  order,  we  were  deter- 
mined to  support  him,  and,  finally,  with  the 
new  year,  when  the  medium  of  exchange  was 
the  same  in  San  Francisco  and  New  York,  no 
persons  in  the  country  rejoiced  more  than  the 
members  of  the  San  Francisco  Stock  and  Ex- 
change Board. 


Resumption 
of  Specie 
Payments 


[289] 


GREAT   DECLINE   IN   BUSINESS 


History  of  the  Scmfrandsco 
Stock  andExdiangeBoard 


CHAPTER  XVII 
GREAT  DECLINE  IN  BUSINESS 


ALIFORNIA  adopted  a  new 
constitution  in  1879.  It 
contained  a  clause  disas- 
trous to  the  Stock  Board. 
Should  a  client  order  his 
broker  to  purchase  $10,000 
worth  of  stock  and  place 
$5,000  in  his  broker's  hands, 
being  50  per  cent  of  the 
purchase,  and  the  stock  advance  in  price, 
he  could  sell  and  receive  back  his  $5,000 
and  the  profits  in  addition,  less  charges 
of  course.  Should  the  stock  decline,  and 
should  he  either  sell,  or  his  broker  sell 
him  out  because  his  margin  was  exhaust- 
ed, he  could  then  sue  the  broker  and 
recover  the  $5,000  originally  deposited.  But  do 
not  think  that  that  law  was  iniquitous  and 
therefore  could  not  be  enforced,  for  it  was 
enforced  for  more  than  25  years.  Mining 
brokers  were  sued  and  judgments  rendered 
against  them.  So  great  a  man  as  Judge  Jackson 
[293] 


Great  Decline 
in  Business 


History  of  the  Sanlrandsco 


Great  Decline 
in  Business 


Temple  decided  against  us,  saying  he  could  not 
help  it — it  was  the  law  and  his  decisions  must 
be  in  accordance  with  the  law.  We  could  not 
win  even  in  the  United  States  Supreme  Court ; 
all  went  against  us. 

There  were  many  honorable  men  who  would 
not  take  advantage  of  this  iniquitous  law,  and 
in  case  of  a  loss  in  stocks  they  paid  like  men. 
But  many  judgments  were  rendered  against 
brokers,  and  in  some  cases  compromises  were 
made.  It's  all  over  now.  The  law  was  repealed 
at  the  last  general  election. 

November  i,  1880,  the  price  of  new  stocks 
to  be  placed  on  the  list  was  reduced  to  $500. 

January  i,  1881.     Officers  elected: 

Geo.  T.  Marye President; 

Henry  Schmiedell Vice-President; 

B.  H.  Coit Chairman; 

J.  M.  Shotwell Treasurer; 

Chas.  S.  Neal Secretary. 

March,  1881.  Eighty  stocks  were  stricken 
from  the  list  for  non-payment  of  the  annual 
dues. 

At  this  time,  1881,  our  once  prosperous  busi- 
ness had  declined  to  a  great  extent.  Many 
members  were  leaving,  and  the  price  of  seats 
had  declined  to  $5,000. 

In  January,   1882,  the  constitution  was  so 
changed  that  it  required  20  blackballs  to  ex- 
clude, instead  of  10  as  before. 
[294] 


Stock  andExchangeBoard 


1882.  Business  had  so  declined  that  we 
reached  out  for  further  business.  Previous  to 
this  all  local  stocks  and  bonds  in  the  city  were 
listed  again,  free  of  charge,  and  a  special  hour 
was  fixed  when  they  could  be  called. 

On  May  15,  1882,  we  organized  a  Grain 
Board,  consisting  of  our  members  and  ad- 
mitting others  acceptable  to  the  Board,  who 
paid  an  admission  fee  of  $250.  The  Grain 
Board  lasted  about  a  year. 

Another  great  factor  in  the  decline  in  our 
business  was  the  demonetization  of  silver.  In 
the  large  bars  of  bullion  produced  from  the 
Comstock  mines,  there  were  more  ounces  of 
silver  than  of  gold,  but,  generally,  the  two 
metals  in  the  bars  were  nearly  equal  in  value. 
In  1873,  Congress  passed  a  law  making  gold 
the  unit  of  value.  Nobody  seemed  to  be 
frightened  about  it  at  the  time,  and  possibly 
none  of  us  foresaw  the  disastrous  conse- 
quences. 

Silver  to  be  at  par  with  gold  must  be  worth 
$1.2929  an  ounce.  About  1876,  in  California, 
the  ill  effects  of  the  law  first  became  visible. 
Silver  receded  slightly.  Very  soon  many  were 
taking  silver  half  dollars  to  the  banks  to  be 
exchanged  for  gold.  Silver  soon  became  so 
plentiful  in  our  banks  that  they  were  compelled 
to  discontinue  accepting  it  in  large  quantities. 
We  tried  to  pay  our  grocery  bills,  butcher  bills, 
[295] 


Great  Decline 
in  Business 


History  of  the  Santraneisco 


and  household  bills  generally,  in  silver.  Even- 
tually the  United  States  Treasurer  came  to  the 
rescue,  and  that  evil  was  stopped.  But  silver 
steadily  declined.  Government  purchases  of 
silver  for  a  time  kept  the  price  between  certain 
figures,  and  when  that  was  stopped,  silver  did 
not  have  a  leg  to  stand  on,  selling  as  low  as  45 
at  one  time. 

This  cut  out,  to  a  large  extent,  the  value  of 
the  ores  in  the  Comstock  mines.  In  the  outside 
districts  where  the  yield  was  all  silver,  mining 
ceased  altogether.  Even  now,  36  years  after 
the  demonetization,  it  is  the  dream  of  many 
an  owner  of  a  silver  mine  that  the  metal  will 
resurrect  itself  and  some  day  again  sell  at  par. 

The  decrease  in  the  expense  of  mining  and 
milling  on  the  Comstock  has  to  a  great  meas- 
ure offset  this  decline  in  silver,  however. 
Should  there  arise  a  better  demand  for  silver  in 
the  arts  and  sciences ;  should  the  price*  be  thus 
advanced  and  the  Government  establish  a  new 
standard,  not  only  the  Comstock,  but  mining 
in  general  the  world  over,  will  be  greatly 
benefited. 


Great  Decline 
in  Business 


[296] 


REVIVAL  IN  BUSINESS 


History  of  the  Sanlhmeisco 
Stock  and  Exchangee  Board 


CHAPTER   XVIII 
REVIVAL    IN    BUSINESS 


HE  shafts  of  the  different  min- 
ing companies  on  the  Corn- 
stock  Lode  were  originally  lo- 
cated on  the  croppings.  The 
lode  ran  north  and  south,  and 
for  about  three  miles  was  pro- 
ducing pay  ore.  In  sinking 
these  shafts  it  was  shown  that 
for  the  first  100  feet  the  ledge 
was  almost  perpendicular  and  about  100  feet 
wide ;  then  it  pitched  to  the  east  at  an  angle  of 
45  degrees.  To  follow  it  the  shafts  would  even- 
tually be  turned  into  inclines.  To  obviate  this 
difficulty,  at  a  very  early  date,  the  different 
mining  companies  began  to  sink  shafts  further 
east,  until,  finally,  the  Combination  Shaft,  com- 
posed jointly  of  the  Savage,  Hale  &  Norcross, 
Chollar  and  Potosi  companies  commenced  work 
3000  feet  east  of  the  croppings.  As  they  sank 
lower  they  were  troubled  with  a  strong  flow 
of  water — hot  water  at  that.  When  this  Com- 
bination Shaft  reached  a  depth  of  3300  feet  and 
[299] 


Revival 
in  Business 


flistory  of  the  Sanfrandsco 


Revival 
in  Business 


drifted  west  to  the  ledge,  the  expense  of  all 
the  different  shafts  on  the  lode  to  pump  out 
the  flow  of  water  was  $400,000  a  year,  more 
than  $1000  a  day,  the  mines  being  assessed  to 
pay  this  amount. 

Business  had  gradually  dwindled  very  low 
and  in  1885  stocks  were  selling  for  almost  noth- 
ing. Consolidated  Virginia  was  less  than  $2 
a  share.  I  met  the  president  of  a  number  of 
the  Comstock  mines  on  the  Oakland  boat  one 
afternoon,  when  calling  me  to  one  side,  he 
remarked:  "I  am  going  to  tell  you  something 
confidentially."  "All  right,"  was  my  answer. 
"Suppose  we  should  stop  pumping  on  the  Com- 
stock, what  would  be  the  result?  "  "Why,"  I 
said,  "the  mines  will  fill  up  with  water  and 
prices  will  go  to  absolutely  nothing.  "Well," 
he  said,  "that's  what  will  take  place.  We  will 
stop  pumping." 

Chollar  and  Potosi  were  then  selling  at  50 
cents  a  share  and  we  looked  for  them  to  go 
lower  with  the  balance  of  the  list.  But  they 
did  not,  and  what  stocks  were  offered  found  a 
purchaser. 

The  mines  commenced  to  fill  up  with  water, 
but  still  stocks  did  not  decline;  in  fact,  they 
advanced  a  trifle,  and  as  fast  as  the  shorts  sold 
them,  buyers  took  them.  This  state  of  things 
continued;  water  rising  higher  in  the  shafts 
and  filling  all  the  drifts ;  holders  of  stocks  sell- 
[300] 


Stock  and  Exchange  Board 


ing  what  they  had  and  shorts  selling  also,  and 
the  prices  rising  higher  every  day. 

In  fact,  we  were  having  a  "market"  and 
stocks  became  so  scarce  that  at  times  there 
were  no  sellers.  For  instance,  Challenge  had 
been  selling  at  20  cents  a  share.  A  prominent 
broker,  having  an  order  for  only  100  shares, 
bid  up  over  the  other  brokers  to  $6  a  share,  and 
then  said:  "Please  somebody  sell  it  to  me." 

It  must  seem  strange  to  business  men  gen- 
erally that  a  broker  would  sell  short  a  stock 
selling  as  low  as  50  cents  a  share.  It  would 
appear  that  50  cents  a  share  would  be  all  one 
could  realize  if  the  stock  sold  down  to  nothing. 
You  will  recollect  that  they  levy  assessments 
on  the  Comstock  shares  nearly  every  60  days — 
at  least  four  times  a  year,  and  a  short  seller  in 
not  filling  his  shorts  will  reap  these  assess- 
ments. To  a  short  seller  the  assessments  be- 
come dividends. 

There  was  a  broker  on  the  floor  who  was 
always  short;  probably  could  not  sleep  well 
at  night  unless  he  had  sold  short  stock  belong- 
ing to  other  people.  Before  and  after  the  news 
of  shutting  down  the  pumps  became  general, 
he  was  selling  all  the  time.  Neither  he  nor 
others  knew  of  the  fact,  but  there  was  a  very 
bright  young  operator  carefully  buying  every-  Revival 
thing  offered.  A  commission  broker  had  an  in  Business 
order  to  buy  several  thousand  shares  of  Chol- 
[30i] 


History  of  the  Sanfraneisco 


Revival 
in  Business 


lar.  It  had  advanced  from  50  cents  to  above 
$i.  It  was  difficult  to  buy  it.  Now  the  policy 
of  the  shorts  became  manifest.  One  of  them 
bid  for  Chollar;  the  commission  broker  fol- 
low.xl  him,  and  the  short  finally  carried  the 
price  to  $2.75,  a  higher  price  than  the  com- 
mission broker  could  pay,  the  policy  being  to 
drive  out  any  buying  order.  It  cut  both  ways, 
having  advanced  so  much  that,  to  fill  them- 
selves, the  shorts  must  lose  at  least  $2  a  share. 
And  when  one  is  short  10,000  to  20,000  shares 
on  a  number  of  those  cheap  stocks,  the  feeling 
is .  not  so  pleasant  and  your  sleeping  not  so 
peaceful. 

Prices  advanced  so  high  one  day,  and  there 
was  such  a  difficulty  in  getting  stock  from 
sellers,  that  Mr.  E.  P.  Peckham,  President  of 
the  Board,  at  the  morning  session,  arbitrarily 
closed  the  Board  for  the  day.  There  was  a 
run  that  day  on  the  offices  of  a  number  of 
prominent  brokers.  Consolidated  Virginia 
jumped  to  $62  on  the  street,  and  the  prices  of 
other  stocks  advanced  also. 

Mr.  James  C.  Flood  returned  from  the  East 
that  night,  and  we  felt  his  hand  the  next  morn- 
ing. Consolidated  Virginia  broke  to  $32  on 
the  call,  and  everything  else  tumbled  with  it. 
But  it  rallied  again  instantly  in  the  informal 
session  to  $49  and  $50. 

Six  brokers  had  "busted"  in  one  day.  It  was 
[302] 


Stock  and  Exchariffe  Board 


only  temporary ;  they  settled  up  and  were  soon 
back  with  us  again.  There  was  a  fair  business 
for  a  while,  but  prices  gradually  settled  back 
again,  and  with  the  fact  that  the  lower  levels 
were  filled  with  water  and  the  upper  levels  had 
been  thoroughly  prospected  and  abandoned 
years  before,  the  conviction  soon  forced  itself 
on  us  that  the  Comstock  was  at  a  stand-still. 


Revival 
in  Business 


[303] 


DEPRESSION  AND  REVIVAL 


History  of  the  Sanfrandsco 
Stock  and Exchanffe  Board 


CHAPTER  XIX 
DEPRESSION  AND   REVIVAL 


GOOD  deal  of  business  was 
transacted  in  outside  stocks. 
As  their  yield  was  mostly 
in  silver,  and  as  silver  had 
been  steadily  declining, 
these  mines  finally  stopped 
working  and  were  gradually 
dropped  from  the  list.  Fin- 
ally, the  Comstock  stocks 
were  the  only  shares  listed  on  the  Board. 

We  had  a  hard  time  of  it  for  many  years. 
A  little  spurt  took  place  about  1895.  James 
Rule  thought  he  could  find  an  old  body  of  ore 
in  Consolidated  Virginia  that  had  been  over- 
looked. He  was  given  free  rein,  but  after 
several  months'  work  the  idea  was  abandoned. 
About  a  mile  and  a  half  east  of  the  Com- 
stock is  another  large,  wide  ledge,  called  the 
Brunswick.  A  very  energetic  broker,  Mr. 
Herman  Zadig,  induced  the  different  companies 
on  the  Comstock  Lode  to  take  up  locations  simi- 
lar in  length  on  the  Brunswick  lode.  Consider- 

[307] 


Depression 
and  Revival 


History  qf the,  Sanfinneisco 


Depression 
and  Revival 


able  work  was  performed  there,  but  no  divi- 
dends were  paid  out  of  this  new  work,  and, 
finally,  that  was  abandoned. 

These  were  the  darkest  days  of  the  Board's 
existence.  The  fact  that  we  owned  our  build- 
ing was  the  only  thing  that  kept  many  from 
leaving  the  Board.  They  felt  we  would  even- 
tually sell  the  building  and  a  big  dividend 
would  be  declared.  This  was  finally  the  case 
in  1903  as  described  before  in  the  chapter  con- 
cerning seats. 

In  the  year  1903,  a  proposition  came  to  us 
to  list  some  of  the  mines  in  Southern  Nevada, 
located  in  the  Tonopah  District.  These  mines 
were  all  incorporated  with  1,000,000  shares,  and 
the  proposition  staggered  us.  Our  experience 
with  the  Imperial  mine  of  500,000  shares  has 
never  been  prolific  of  commissions,  and  we 
thought  these  companies  would  also  be  failures. 
But  we  soon  listed  those  stocks,  and  with  them 
came  mines  in  new  districts  in  Southern  Ne- 
vada, notably  the  Goldfield,  Bull  Frog  and 
Manhattan  districts.  In  all  we  had  over  600 
stocks  on  our  list,  and  the  largest  general  busi- 
ness ever  transacted  in  the  Board  came  with 
these  Southern  Nevada  stocks. 

Prominent  members  of  the  Pacific  Stock 
Exchange  were  admitted  to  our  Board  on  Sep- 
tember 8th,  1904.  Immediately  afterward  our 
numbers  were  increased  by  the  active  members 
[308] 


Stock  and  Exchange  Board 


of  the  Tonopah  Board.  Business  increased 
with  the  accession  of  these  new  members,  and 
the  listing  of  the  new  stocks,  until  at  the  time 
of  the  great  fire,  April  i8th,  1906,  the  members 
generally  were  very  busy.  During  the  recess, 
which  ended  May  28th,  1906,  members  were 
quite  restive,  as  orders  were  flowing  in  from 
all  points,  and  our  next  great  prosperity  in 
modern  days  appeared,  so  soon  as  we  resumed 
business.  Brokers  became  so  active  that  the 
force  of  clerks  in  the  different  offices  were  de- 
tained until  12  and  i  o'clock  at  night.  On 
several  occasions  more  than  1,000,000  shares 
were  bought  and  sold  in  a  single  day.  The 
business  became  so  large,  that  the  old  custom 
of  drawing  checks  for  each  purchase,  and  the 
delivery  on  a  separate  tag  of  each  stock  sold, 
was  too  onerous.  It  became  necessary  to  form 
a  Clearing  House,  where  the  entire  business  of 
the  day  could  be  speedily  settled.  This  has 
given  such  general  satisfaction  that  the  Clear- 
ing House  has  become  a  permanent  institution 
with  the  Board. 

The  commissions  of  many  members  at  that 
time  exceeded  $1,000  a  day. 

In  consequence  of  the  great  business,  sub- 
sequent to  the  listing  of  the  mines  in  Southern 
Nevada,  it  was  decided  that  as  many  of  the 
brokers  as  could  do  so,  should  make  a  visit  to 
Tonopah  and  Goldfield.  The  vacation,  usually 
[309] 


Depression 
and  Revival 


History  of  the,  Santraneisco 


Depression 
and  Revival 


taken  on  the  4th  of  July,  1905,  was  extended  to 
10  days,  in  order  to  give  us  plenty  of  time. 
On  the  Saturday  before  the  4th,  twenty-three 
brokers  entered  a  special  car,  reserved  for  the 
purpose,  and  left  the  Oakland  Mole  at  6  o'clock 
in  the  afternoon.  Reno,  Tonopah  and  Goldfield 
cities  decided  to  welcome  us.  Sunday  morning 
at  8  o'clock  we  sat  down  to  a  fine  breakfast  at 
Reno.  We  were  cordially  welcomed  at  Carson, 
had  a  good  repast  at  Wabuski,  and  on  arriving 
at  Sodaville  we  entered  an  additional  private 
car  on  the  narrow-gauge  railroad,  and  com- 
menced a  record-breaking  trip  to  Tonopah. 

It  was  a  fine  sight  in  that  dark  night,  to 
watch  the  long  line  of  sparks  streaming  far 
behind  the  locomotive,  as  we  were  hurried  on 
toward  Tonopah.  On  this  car  we  were  in 
charge  of  a  committee  from  Tonopah,  and  were 
enlivened  by  speeches,  songs  and  music.  When 
we  rolled  into  Tonopah  at  12:10  Monday  morn- 
ing we  were  greeted  by  the  sounding  of  whis- 
tles, the  screeching  of  the  locomotive,  and 
ringing  of  bells.  We  entered  a  large  wagon, 
with  a  back  action,  hauled  by  22  mules,  pre- 
ceded by  a  brass  band  playing  Marching 
Through  Georgia ;  passed  through  Main  street, 
all  the  way  surrounded  by  enthusiastic  friends, 
each  carrying  a  lighted  torch.  On  turning  a 
street,  at  a  right  angle,  toward  the  Mizpah 
Club,  the  tune  was  changed  to  "There  Will  Be 
[310] 


XOQI   tdHAOa   3HT   'SO    8H3HBI3M 


ihe  SanRrrndsco 


j,th  of  July,  1905,  was  extended  to 
jo  days,  in  order  to  give  us  plenty  of 
On  the  Saturday  before  the  4th,  twenty-three 
brokers  entered  a  special  car,  reserved  for  the 
purpose,  and  left  the  Oakland  Mole  at  6  o'clock 
in  tht  m  Reno,  Tonopah  and  Goldfield 

t\don\9  u&    Sunday  morning 
at  8  c 

-• 

ile  we  entered 
car  on  u 

:g  trip  to  Tonopah. 

tie  sight  in  that  dark  night,  to 

e  long  line  of  sparks  streaming  far 

d  the  locomotive,  as  we  were  hurried  on 

toward  Tonopah.     On  this  car  we  were  in 

charge  of  a  committee  from  Tonopah,  and  were 

enlivened  by  speeches,  songs  and  music.  When 

ro  Monday  morn- 
?nf  v  Amis- 


Marching 

U  Main  street, 

enthusiastic  friends, 

i  a  lighted  torch.     On  turning  a 

right  angle    toward  the  l^Iizpah 

MEMBERS    OF   THE   BOARD,    1907 
[310] 


Stock  and  Exchame  Board 


a  Hot  Time  in  the  Old  Town  To-night."  And 
there  was  a  hot  time.  At  the  Club,  President 
Thomas  Bannerman  cordially  welcomed  us. 
Two  o'clock  in  the  morning  saw  a  few  of  us  in 
bed  at  the  Merchants  Hotel. 

We  visited  the  mines  the  next  day,  and  sub- 
sequently enjoyed  a  grand  banquet.  On  the 
night  of  the  4th  of  July,  there  were  a  number 
of  private  banquets  from  which  every  one, 
citizens  and  visitors  alike,  was  dragged  to  a 
pen  erected  in  Main  street,  taken  before  a 
mock  judge,  and  fined  all  the  way  from  $1.00 
to  $20.00  each — the  fines  being  intended  for  a 
hospital  for  sick  and  injured  miners.  Next 
morning  at  breakfast,  we  met  a  committee  from 
Goldfield,  with  autos  awaiting  us,  and  were 
hurried  off  to  Goldfield,  along  the  line  of  the 
projected  railroad,  afterwards  finished.  An- 
other grand  banquet  awaited  us  at  Goldfield, 
which  lasted  until  2 :3o  in  the  morning,  in  con- 
sequence of  speeches,  mineral  water  and  other 
necessaries  of  life.  We  averaged  a  little  more 
than  two  hours  sleep  each  night  in  consequence 
of  the  honors  heaped  upon  us.  The  next  day, 
in  autos  and  carriages,  we  spent  hours  in  visit- 
ing all  the  principal  mines,  with  the  ther- 
mometer, at  the  government  station,  register- 
ing 130  in  the  sun,  106  in  the  shade.  More 
banquets  and  a  ball  that  night. 

We  spent  the  next  morning  making  our- 


Depression 
and  Revival 


History  of  the  Sanfrandsco 


Depression 
and  Revival 


selves  thoroughly  acquainted  with  the  business 
situation,  and  at  2  in  the  afternoon  the  last  of 
us  entered  automobiles,  and  were  whisked  off, 
at  a  high  speed,  to  Tonopah.  Another  recep- 
tion at  the  Mizpah  Club,  and  at  9  o'clock  most 
of  us  were  at  rest  in  a  sleeper  at  the  railroad 
station,  waking  up  in  the  morning,  well 
started  on  our  return  trip,  probably  the  most 
momentous  of  any  in  the  history  of  the  Board. 
What  a  great  satisfaction  it  is,  and  what  pride 
one  feels  in  his  fellow  countrymen,  on  a  trip 
of  this  kind,  to  encounter,  five  hundred  miles 
away  from  home,  so  many  kind  hearts  and 
generous  spirits  to  welcome  you  and  make 
your  visit  agreeable.  The  United  States  con- 
tains many  great  cities  filled  with  generous  and 
agreeable  companions,  but  none  more  so  than 
those  we  met  on  this  trip  to  Goldfield  and 
Tonopah. 

On  Wednesday,  April  18,  1906,  at  5:13  a.  m., 
a  great  earthquake  shook  San  Francisco.  We 
had  become  accustomed  to  earthquakes.  That 
of  October,  1868,  was  severe,  but  we  survived. 
San  Francisco  experienced  so  many  before  that, 
really,  old  residents  would  hold  their  breath 
while  their  houses  were  shaking,  and  generally 
experience  a  feeling  of  pride,  after  the  thing 
was  over,  if  it  really  was  a  good  one.  We 
would  talk  and  boast  of  a  quake  for  a  day  or 
two  and  then  forget  it.  After  a  quake  was  over, 
[312] 


Stock  and  Exchange  Board 


no  houses  shaken  down,  no  damage  but  broken 
glass,  no  lives  lost,  we  looked  with  commiser- 
ation on  the  poor,  scared  individual  who  dwelt 
on  the  circumstance  a  week  later.  But  please 
excuse  us  from  any  more  quakes  similar  to 
that  of  April  18,  1906.  All  other  records  with 
us  were  broken.  It  was  only  48  seconds — a 
very  long  one  for  our  city. 

Many  of  the  brokers  were  at  the  Board  that 
terrible  morning  at  6:30.  Quite  a  number  in- 
stantly removed  their  cash  books  and  ledgers, 
others  left  their  books,  valuables  and  money  in 
their  vaults.  We  did  not  know  it,  but  we  were 
taking  a  last  look  at  our  proud  building.  Fires 
started  early  that  Wednesday  morning,  and  by 
10  o'clock  Sansome  street,  just  below  the 
Board  building,  was  ablaze. 

The  fires  raged  Wednesday,  all  Wednesday 
night,  Thursday,  all  Thursday  night,  Friday, 
all  Friday  night,  and  were  still  burning  Satur- 
day morning.  Our  Stock  Board  building  was 
blown  up  and  burned  Thursday  morning  early. 
Four-fifths  of  the  city  was  in  ashes.  Business 
quickly  revived.  We  leased  a  lot  on  the  south 
side  of  Bush  street,  above  Montgomery,  No. 
339,  and  were  the  first  to  rebuild. 

The  banks  opened  May  23d,  and  the  Board 
resumed  May  28th.     The  Grain  Board  kindly     Depression 
allowed  us  their  quarters  in  the  Merchants'  Ex-      and  Revival 
change,  where  we  held  an  hour's  session  each 


Mstory  of  the  SanFrandsca 


Depression 
and  Revival 


day  until  June  u,  when  we  moved  to  our  own 
building  on  Bush  street.  Here  business  re- 
vived to  a  very  great  extent.  Orders  came 
from  all  over  the  State  of  Nevada,  and  a  very 
large  business  from  New  York.  One  session 
lasted  from  9 130  a.  m.  to  i  p.  m.  The  business 
was  almost  exclusively  in  the  Southern  Nevada 
stocks. 

As  the  Comstock  Lode  is  the  largest  ever  dis- 
covered, as  the  shares  of  the  different  locations 
have  been  listed  on  the  Board  for  47  years 
(now  1909),  what  is  the  future  of  the  Com- 
stock? 

The  many  great  mining  men  that  have 
helped  to  develop  the  lode  will  differ  in 
opinion  in  answer  to  this  question.  Some  may 
discourage  deeper  developments.  It  is  believed 
a  body  of  ore  will  be  found  on  the  2900-foot 
level  of  the  Union  Consolidated.  It  is  believed 
a  body  of  ore  will  be  found  on  the  2soo-foot 
level  of  the  Savage.  Others  are  said  to  exist 
in  the  Exchequer,  Alpha,  Belcher,  Crown  Point 
and  other  mines  below  the  water  level. 

Efforts  were  begun  in  1898  to  remove  the 
water  by  large  pumps  in  the  Consolidated  Vir- 
ginia. They  have  decreased  the  water  to  the 
25oo-foot  level,  and  new  ore  bodies  have  been 
found  in  Ophir  and  Mexican.  A  new  pump 
lately  began  work  in  the  Ward  shaft. 

An  event  of  the  greatest  importance  relating 


3HT  1Q 
3OWAHOX3 


.82JOOUH 


QVIA  XOOT8 


.A 

MA8 


~  ii,  when  we  moved  to  our  own 

3ush  street.     Here  business  re- 

a  very  great  extent.     Orders  came 

over  the  State  of  Nevada,  and  a  very 

large  business  from  New  York.    One  session 

lasted  from  9  :ao  a.  m.  to  i  p.  m.    The  business 

was  a  evada 

stocks. 


any    great   mining    men    that   have 

evelop    the  .lode    will    differ    it 

swer  to  this  question.    Some  maj 

;e  deeper  developments.    It  is  believec 

a  body  of  ore  will  be  found  on  the  2goo-foo< 

level  of  the  Union  Consolidated.    It  is  believec 

a  bc,  the  2300-foo 

I  to  exis 


oot  level,  and  new  es  have  beer 

Ophir  and  Me  A  new 

••>.--     wnrk  in  the  Ward  shaft. 
A.     B.     RUGGLES,     PRESIDENT     OF    THE 
SAN  FRANCISCO  STOCK  AND  EXCHANGE 
BOARD,    1910 


Stock  and  Exchange  Board 


to  the  future  of  the  Comstock  Lode  is  the  fact 
that  Mr.  E.  B.  Sturges,  a  wealthy  Eastern 
gentleman,  has  lately  interested  himself  in 
these  mines,  and  at  present  controls  many  of 
them,  investing  largely  in  their  shares.  In- 
terested with  Mr.  Sturges  are  a  number  of 
influential  men. 

In  the  opinion  of  the  writer  much  time  has 
been  wasted  in  pumping  out  the  water  from 
the  lower  levels.  We  learn  of  difficulties  of  a 
similar  nature  in  other  parts  of  the  world, 
where,  by  greater  energy,  these  difficulties 
have  been  overcome.  All  efforts  should  be 
made  to  lower  the  water.  Pump  it  all  out,  keep 
it  out,  and  sink  for  the  lower  levels.  Those  in 
power  up  to  1886  drifted,  tunneled  and  dia- 
mond-drilled the  ledge,  but  did  not  find  suffi- 
cient developments  to  warrant  a  continuance 
of  the  great  pumping  expense  of  $400,000  a 
year,  and  abandoned  the  workings,  letting 
them  fill  up  with  water. 

Let  us  strive  once  more  to  resurrect  the 
Comstock.  Let  us  urge  everyone  connected 
with  it  to  make  more  determined  efforts  to 
exhaust  the  water  and  obtain  a  look  at  the  bot- 
tom again.  Sink  the  shafts  lower  than  ever 
and  place  all  of  our  hopes  in  developments 
below  the  sooo-foot  level. 


Depression 
and  Revival 


[315] 


BOARD  MEMBERSHIP 


History  of  the  Sanfrancisco 
Stock  and  Exchange  Board 


CHAPTER   XX 
BOARD   MEMBERSHIP 


N  1877,  from  information  ob- 
tained from  the  minute 
book  of  the  Board,  we  made 
out  a  complete  list  of  the 
members  of  the  Board. 

First— The  forty  charter 
members ; 

Second — The  second  for- 
ty members,  chosen  at  the 
close  of  1862  and  beginning  of  1863; 

Third — The  twenty  members  elected  June 
12,  1875,  and  afterwards  paying  $25,000  each 
to  the  Board  for  their  seats. 

We  carried  out  the  names  of  all  the  success- 
ors of  the  above  with  the  dates  of  their  election, 
handed  it  over  to  the  Clerk  of  the  Board,  whose 
duty  it  was  to  post  the  name  of  each  newly 
elected  member  after  the  name  of  his  predeces- 
sor.    This  list  was  continued  down  to  April 
1 8,  1906,  when,  with  all  other  records  of  the 
Board,  it  was  destroyed  in  the  great  fire. 
It  would  be  a  matter  of  great  labor  to  re- 
[3*9] 


Board 
Membership 


History  of  the  Sanfrandsco 


Board 
Membership 


construct  this  list,  but  we  began  the  effort  in 
1908,  and  believe  we  have  the  name  of  each 
person  ever  a  member.  The  great  difficulty  is 
to  ascertain  the  predecessors  of  members.  For 
instance,  we  have  the  list  of  October  17,  1863; 
the  next  list  in  our  possession  being  that  of 
April  24,  1864.  There  are  eleven  members 
who  left  the  Board  during  that  period  and 
eleven  newly  elected  members.  We  are  en- 
deavoring to  ascertain  from  which  particular 
person  each  of  the  eleven  newly  elected  pur- 
chased. 

A  file  of  the  San  Francisco  News  Letter  from 
September  n,  1862,  until  August  6,  1864, 
would  supply  much  needed  information.  It 
was  a  weekly  paper,  and  published  in  each 
edition,  for  probably  two  years,  the  complete 
list  of  the  members  with  their  places  of  busi- 
ness. Unfortunately,  no  complete  file  of  this 
paper  has  yet  been  discovered  which  escaped 
the  fire.  At  the  Bancroft  Library,  at  the  Uni- 
versity of  California,  can  be  seen  a  few  copies, 
from  which  much  of  our  information  has  been 
gathered.  It  would  be  of  great  benefit  to  us  to 
be  permitted  to  examine  copies  of  the  San 
Francisco  News  Letter  from  September,  1862, 
to  August,  1864.  Such  a  file  may  be  in  the 
possession  of  some  person  on  this  Coast. 

A  copy  of  the  Constitution  and  By-Laws  of 
September  n,  1862,  gives  us  the  names  of  only 
[320] 


Stock  and  Exchange  Board 


37  of  the  charter  members.  From  the  best 
information  we  can  obtain  it  is  thought  the 
three  missing  names  are  S.  J.  Sparrow,  Joseph 
Bates  and  L.  B.  Adsit. 

Again,  the  earliest  list  in  our  possession  sub- 
sequent to  that  of  the  37  charter  members  is 
taken  from  the  News  Letter  of  October  17, 
1863,  containing  80  names.  This  must  include 
to  a  great  extent  the  names  of  the  second  forty 
members,  of  which  we  are  certain  of  but  three, 
namely:  J.  Bryant  Hill,  L.  F.  Loveland  and 
Frank  Hassey. 

We  are  thus  compelled  to  publish  an  alpha- 
betical list  of  past  and  present  members,  leav- 
ing a  blank  for  information  not  yet  obtained 
and  much  desired. 

Members,  October  17,  1863,  from  the  "News 
Letter"  in  possession  of  the  Bancroft  Library: 


Abbot,  O. 
Adsit,  L.  B. 
Barclay,  G.  R. 
Boileau,  F. 
Berry,  R.  N. 
Brown,  L.  A. 
Beard,  J.  R. 
Bradford,  C.  H. 
Bates,  Joseph 
Bayly,  L. 
Burling,  W. 
Budd,  W.  C. 
Beeman,  J.  H. 


Bowman,  E.  P. 
Blake,  G.  M. 
Cavallier,  J.  B.  E. 
Critcher,  H. 
Cornwall,  P.  B. 
Charles,  T.  C. 
Chappelle,  A.  M. 
Gumming,  J. 
Cobb,  H.  A. 
Camp,  H. 
Darnell,  H.  Y. 
Davies,  John  S. 
DeWolf,  S. 
[321  ] 


Board 
Membership 


History  of  the  Santrancisco         L 

!Rl 

§>*  Falkenau,  J. 

Pixley,  F.  M.                             :  - 

Grant,  J. 

Parker,  W.  C.                         ^T 

Gildemeester,  A.  H. 

Pease,  E.  T.                          £& 

Giffin,  O.  F. 

Peckham,  E.  P.                       S\ 

Garnett,  L.  A. 

Rising,  D.  B. 

Higgins,  W.  L. 

Roberts,  D. 

Hyman,  P.  C. 

Rqbbins,  J.  J. 

Henriques,  D. 

Reeve,  G.  B. 

Hassey,  F.  A. 

Sanborn,  T.  C. 

Hall,  O.  C. 

Schmiedell,  H. 

Hill,  J.  B. 

Shipley,  A.  J. 

Heydenfeldt,  S. 

Smiley,  J. 

Holt,  Z. 

Sparrow,  S.  J. 

Hedges,  L.  H. 

Teacle,  E.  W. 

Heath,  R.  W. 

Talbot,  T.  A. 

Ireland,  L.  F. 

Tabor,  Isaac 

Lawton,  F. 

Vogelsdorff,  B.  W. 

Lawton,  W.  W. 

Van  Lokkeran,  A. 

Loveland,  L.  F. 

Watson,  N.  A. 

Lubeck,  S. 

Wilson,  J.  D. 

Logan,  H.  C. 

Williams,  D.  C. 

Marina,  E.  J.  de  St. 

Winans,  J.  C. 

Mayer,  Simon 

Woods,  F.  H. 

Moulder,  A.  J. 

West,  C.  H. 

Newell,  L.  W. 

Wheeler,  H.  C. 

Perry,  John,  Jr. 

Wakelee,  C.  H. 

Page,  R.  C. 

Wakelee,  H.  P. 

Board 
Membership 


Members,  December  31,  1864,  from  the 
"News  Letter"  in  possession  of  the  Bancroft 
Library : 


Abbot,  O. 
Adsit,  L.  B. 
Boilleau,  F. 


Brown,  L.  A. 
Bradford,  C.  H. 
Bates,  Jos. 
[322] 


Stock  ondExchangeBoard 


Burling,  W. 
Budd,  W.  C. 
Bowman,  E.  P. 
Cavallier,  J.  B.  E. 
Cobb,  H.  A. 
Critcher,  H. 
Cornwall,  P.  B. 
Charles,  T.  C. 
Gumming,  John 
Child,  E.  F. 
Constantine,  J. 
Darnell,  H.  Y. 
DeWolfe,  S. 
Duncan,  W.  L. 
Dewey,  E.  E. 
Dwyer,  D. 
Freeborn,  J. 
Fisher,  L.  W. 
Felton,  C.  N. 
Fry,  J.  D. 

Gildermeester,  A.  H. 
Garnett,  L.  A. 
Grimm,  C.  H. 
Higgins,  W.  L. 
Hyman,  P.  C. 
Henriques,  D. 
Hassey,  F.  A. 
Hall,  O.  C. 
Hill,  J.  B. 
Holt,  Z. 
Herman,  S. 
Hill,  Thomas 
Hagadorn,  A.  H. 
Hedges,  L.  H. 


Howard,  J.  L. 
Heath,  R.  W. 
Ireland,  L.  F. 
Lawton,  F. 
Loveland,  L.  F. 
Lubeck,  S. 
Logan,  H.  C. 
McDonald,  M.  L. 
Marina,  E.  J.  de  St. 
Mayer,  Simon 
McKenty,  J. 
Mizner,  L.  B. 
Mills,  S.  B. 
McElwain,  J. 
McAneny,  G.  B. 
Mathews,  E.  J. 
Perry,  John,  Jr. 
Page,  R.  C. 
Pease,  E.  T. 
Peckham,  E.  P. 
Rising,  D.  B. 
Roberts,  D. 
Robbins,  J.  J. 
Reeve,  G.  B. 
Sanborn,  T.  C. 
Schmiedell,  H. 
Shipley,  A.  J. 
Smiley,  James 
Sparrow,  S.  J. 
Sharon,  W. 
Shockley,  T. 
Schmidt,  B.  L. 
Teacle,  E.  W. 
Teller,  J.  D.  P. 


Board 
Membership 


[323] 


History  of  the  SanTrancisco 


'ill     *> 

\ 

HB 

\UjW 

tt 

n? 

fl  Vogelsdorff,  B.  W. 

West,  C.  H. 

^ 

%p? 

Watson,  N.  A. 

Winans,  J.  C. 

^ 

Williams,  D.  C. 

Wakelee,  H.  P. 

fC* 

Woods,  F.  H. 

^ 

Board 
Membership 


Members,  June  i,  1875.  Final  list  of  80 
members  prior  to  the  increase  of  membership 
to  100: 


Brooks,  S.  H. 
Bonynge,  C.  W. 
Boswell,  S.  B. 
Brown,  J.  W. 
Budd,  W.  C. 
Burling,  W. 
Burtsell,  J.  M. 
Cahill,  Edward 
Charles,  H.  A. 
Child,  E.   F. 
Coit,  B.  H. 
Coleman,  J.  W. 
Coursen,  G.   A. 
Crocker,  J.  H. 
Cope,  Geo.  W. 
Deane,  Coll 
Dixon,  Samuel 
Duncan,  W.  L. 
Everett,  A.  F. 
Eyre,  E.  E. 
Ford,  Jos. 
Fitch,  J.  R. 
Foster,  W.  H. 
Freeborn,  J. 
Fox,  C.  W. 
Glover,  G.  F.  M. 


Glazier,  I. 
Greenebaum,   J. 
Hall,  E.  F. 
Hill,  H.  L. 
Herr,  J.  J. 
Hopkins,  C.  H. 
Hubbard,  C.  V.  D. 
Higgins,  W.  L. 
Hassey,  F.  A. 
Hale,  W.  E. 
Ives,  G.  I. 
Jones,  J.  H. 
Keene,  J.  R. 
Kenney,  C.  A. 
King,  Joseph  L. 
Kilgour,  L. 
Kinsey,  A.  G. 
Knox,  G.  T. 
Latham,  J.  H. 
Lissak,  A.  H. 
Logan,  H.  C. 
Loveland,  L.  F. 
Lawton,  F. 
Lynch,  J. 

Mahoney,  J.  H.,  Jr. 
Marina,  E.  J.  de  St. 


Stock  and  Exchange  Board 


McDonald,  M.  J. 
McDonald,  M.  L. 
McKenty,  J. 
Noble,  H.  H. 
Parker,  W.  C. 
Page,  R.  C. 
Peckham,  E.  P. 
Perry,  John,  Jr. 
Rogers,  R.  F. 
Rorke,  B.  B. 
Schmiedell,   H. 
Shawhan,  J.  E. 
Shotwell,  J.  M. 
Smiley,  G.  W. 


Stanford,  W.  T. 
Stoutenborough,  C.  H. 
Steinhart,  S. 
Sherwood,  B.  F. 
Schmitt,  Maurice 
Thornburgh,  W. 
Turnbull,  W. 
Vimont,  J.  N. 
Williams,  H. 
Whitney,  A.  W. 
Wilke,  F.  E. 
Woods,  F.  H. 
Winans,  J.  C. 
Zinns,  L.  A. 


List  of  20  additional  members,  elected  in 
Board  seats  at  $25,000  each : 

1.  June  12,  1875 William  Sharon 

2.  June  12,  1875 James  C.  Flood 

3.  June  12,  1875 Robert  F.  Morrow 

4.  June  12,  1875 James  D.  Fry 

5.  June  12,  1875 William  S.  O'Brien 

6.  June  12,  1875 Alexander  Austin 

7.  June  12,  1875 George  M.  Pinney 

8.  June  12,  1875 Richard  C.  Hooker 

9.  June  12,  1875 Charles  N.  Felton 

10.  June  12,  1875 H.  H.  Scott 

11.  June  12,  1875 John  P.  Jones 

12.  June  21,  1875 L.  T.  Haggin 

13.  June  24,  1875 H.  Hart 

14.  June  24,  1875 Samuel  B.  Wakefield 

15.  Aug.  16,  1875 Charles  S.  Neal  Board 

16.  Nov.  22,  1875 George  T.  Marye,  Jr.        Membership 

17.  Nov.  29,  1875 Marcus  P.  Hall 

[325] 


History  of  the  Scmfrandsco 


18.  Nov.  29,  1875 Eugene  E.  Dewey 

19.  Nov.  29,  1875 Joseph  Quay 

20.  Sept.  27,  1877 Martin  Herman 

Members,  July,  1903,  who  received  the  divi- 
dend of  $3,000  from  the  sale  of  the  Pine  street 
building : 


Board 
Membership 


Barrett,  E.  P. 
Brooks,  S.  H. 
Coleman,  J.  V. 
Coffin,  A.  F. 
Cope,   Geo.  W. 
Coursen,  G.  A. 
Edwards,  Wm. 
Epstein,  E. 
Fitch,  J.  R. 
Flood,  J.  L. 
Foster,  A.  W. 
Fox,  C.  W. 
Fox,  H.  L. 
Francis,  H. 
Fry,  R.  D. 
Glazier,  I. 
Greenebaum,  J. 
Hawxhurst,  R. 
Hadley,  F.  W. 
Heath,  R.  W. 
Herman,  M. 
Hopkins,  E.  W. 
Ives,  G.  I. 
Jones,  J.  P. 
Kelley,  G,  W. 
King,  J.  L. 
King,  H.  S. 


Kuhl,  H.  G. 
Lynch,  J. 
Laing,  C.  D. 
Mackenzie,  John 
Marks,  Joseph 
Marshall,  L. 
Marye,  G.  T. 
McDonald,  M.  J. 
McDonnell,  A.  J. 
Messer,  N.  T. 
Miller,  Geo. 
Morrow,  R.  F. 
Nash,  Joseph 
Noble,  H.  H. 
Paxton,  C.  E. 
Phipps,  A.  B. 
Rogers,  R.  F. 
Ruggles,  A.  B. 
Smith,  H.  B.,  Jr. 
Schmitt,  M. 
Scott,  E. 
Shaw,  B.  F. 
Shinn,  H.  H. 
Stoutenborough,  C.  H. 
Steinhart,  S. 
Stauf,  W. 
Thurston,  G.  P. 


[326] 


Stock  and  Exchange  Board 


Van  Wyck,  H.  L. 
Wattles,  J.  B. 
Williams,  H.  A. 
White,  W.  F. 
Walker,  O.  V. 
Whitely,  H.  M. 
ESTATES 
W.  Sharon 
W.  S.  O'Brien 
Coll  Deane 
S.  B.  Wakefield 
W.  E.  Norwood 
Frank  Swift 
H.  L.  Coleman 
James  Freeborn 
H.  Schmiedell 
G.  W.  Tindall 


J.  W.  Coleman 
Frank  Hassey 
O.  W.  Marye 
J.  M.  Shotwell 

E.  E.  Eyre 

F.  H.  Woods 
J.  M.  Goewey 
W.  E.  Hale 
R.  R.  Grayson 
S.  Dixon 

G.  Frederich 
B.  F.  Sides 
A.  G.  Gurnett 
Geo.  C.  Hickox 

5  Delinquents 
11  Board  Seats 


In  1903  the  Board  purchased  many  seats. 
The  following  were  the  active  members  re- 
maining : 


1  Barrett,  E.  P. 

2  Coffin,  A.  F. 

3  Coursen,  G.  A. 

4  Edwards,  W. 

5  Epstein,  E. 

6  Fitch,  J.  R. 

7  Flood,  J.  L. 

8  Foster,  A.  W. 

9  Fox,  C.  W. 

10  Fox,  H.  L. 

11  Fry,  R.  D. 

12  Greenebaum,  J. 


13  Hawxhurst,    R. 

14  Hadley,  F.  W. 

15  Heath,  R.  W. 

16  Kelley,  G.  W. 

17  King,  J.  L. 

18  Kuhl,  H.  G. 

19  Laing,  C.  D. 

20  Mackenzie,  J. 

21  Marks,  Joseph 

22  Marye,  G.  T. 

23  McDonald,  M.  J. 

24  McDonnell,  A.  J. 

[327] 


Board 
Membership 


History  of  the  SanFrancisco 


I"  IB 


Board 
Membership 


25  Messer,  N.  T. 

26  Miller,    G. 

27  Morrow,  R.  F. 

28  Nash,   Joseph 

29  Paxton,  C.  E. 

30  Phipps,  A.  B. 

31  Ruggles,  A.  B. 

32  Schmitt,   M. 

33  Scott,   E. 

34  Shaw,  B.  F. 

35  Shinn,  H.  H. 

36  Steinhart,   S. 

37  Stauf,  W. 

38  Thurston,  G.  P. 


39  Van  Wyck,  H.  L. 

40  Wattles,  J.  B. 

41  White,  W.  F. 

42  Walker,  O.  V. 

ESTATES 

43  S.  B.  Wakefield 

44  J.  W.   Coleman. 

45  E.  E.  Eyre. 

46  J.  M.  Goewey 

47  B.  F.  Sides 

48  A.  G.  Gurnett 

49  R.  R.  Grayson 

50  G.  W.  Cope. 
50  Board   Seats 


Seats  purchased  by  the  Board : 


1  Loveland,  L.  F. 

2  Brown,  J.  W. 

3  Lissak,  A.  H. 

4  Child,  E.  F. 

5  Scott,  H.  H. 

6  Hall,  M.  P. 

7  Mahoney,  J.   H. 

8  Duncan,   W.   L. 

9  Bernhard,  J.  H. 

10  Patterson,   Jas. 

11  Jones,  O.  R. 

12  Anderson,  Chas. 

13  Walls,  Jno.  A. 

14  Harris,  C.  P. 

15  Cahill,  E.  F. 

16  Brooks,  S.  H. 

17  Keene,  Jas.  R. 

18  Sharon,  Wm. 


19  O'Brien,  W.  S. 

20  Norwood,  W.  E. 

21  Swift,  Frank 

22  Freeborn,  Jas. 

23  Schmiedell,  Henry 

24  Hassey,  F.  A. 

25  Shotwell,  J.  M. 

26  Woods,  F.  H. 

27  Hale,  W.  E. 

28  Dixon,  S. 

29  Frederich,  G. 

E.       30  Hickox,  Geo.  C. 

31  Coleman,  H.  L. 

32  Tindal,  Geo.  W. 

33  Marye,  O.  W. 

34  Hopkins,  E.  W. 

35  Ives,  Geo.  I. 

36  Noble,  H.  H. 
[328] 


Stock  and  Exchange  Board 


37  Stoutenborough,  C.  H.      44  Whitely,  H.  M. 


38  Francis,  H. 

39  Herman,   M. 

40  King,  H.  S. 

41  Rogers,  R.  F. 

42  Smith,  H.  B.,  Jr. 

43  Williams,  H. 


45  Coleman,  Jas.  V. 

46  Marshall,  Louis 

47  Jones,  J.  P. 

48  Glazier,  I. 

49  Lynch,  J. 

50  Deane,  Coll 


Membership,  October  20,  1909, — officers  and 
members : 

A.  B.  RUGGLES President 

WM.    EDWARDS Vice-president 

JOS.  L.  KING Chairman 

E.    EPSTEIN Secretary 

CHAS.  D.  LAING Treasurer 

Arrowsmith,  G.  E 306  Bush 

Atherton,  F.  D 332  Bush 

Bannan,  Wm 337   Bush 

Barrett,  E.  P 324  Bush 

Berghauser,  J.  H 375  Bush 

Bishop,  F.  W S.  F.  Stock  Ex. 

Boas,  Nat 448  Mont'y 

Bond,  W.  F S.  F.  Stock  Ex. 

Bourne,  J.  B S.  F.  Stock  Ex. 

Chamberlain,  F.  O S.  F.  Stock  Ex. 

Clark,  G  S 339  Bush 

Coffin,  A.  F 339  Bush 

Curtis,  Uri  B S.  F.  Stock  Ex. 

Degan,  J.  E 353  Bush 

Donnellan,  K 353  Bush 

Doubleday,  D.  G S.  F.  Stock  Ex. 

Douglas,  W.  G 335  Bush 

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Frankenthal,  A 412  Mont'y 

Fry,  R.  D S.  F.  Stock  Ex. 

Godchaux,  E 310  Mont'y 

Greenebaum,  J 224  Calif. 

Hadley,  F.  W 339  Bush 

Hannon,  W.  H 339  Bush 

Hayes,  W.  J 339  Bush 

Herzberg,  1 339   Bush 

Hinkel,  Wm 117  Russ  Bldg. 

Hirshfield,  Chas S.  F.  Stock  Ex. 

Hopkins,  J.  P 332  Bush 

Houseworth,  F.  A 306  Bush 

Hudson,  Chas.  E 353  Bush 

King,  Jos.  L 339  Bush 

Krause,  A 353  Bush 

Kullmann,  J 353  Bush 

Laing,  C.  D 339  Bush 

Lewis,  F.  R 312  Bush 

Mackenzie,  Jno 339  Bush 

Marks,  Jos S.  F.  Stock  Ex. 

Marye,  Geo.  T.,  Jr S.  F.  Stock  Ex. 

McMullan,  John 368  Bush 

Mikulich,  Wm.  C S.  F.  Stock  Ex. 

Moise,  W.  H 339  Bush 

Montague,  P.  S 339  Bush 

Morrow,  R.  F 822  Kohl  Bldg. 

Nash,  Jos S.  F.  Stock  Ex. 

Norwood,  H.  H 306  Bush 

Paxton,  Chas.  E 339  Bush 

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Ramsey,  H S.  F.  Stock  Ex. 


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Shaw,  B.  F .335  Bush 

Shinn,  H.  H 339  Bush 

Stauf,  Emil S.  F.  Stock  Ex. 

Stauf,  Werner 375  Bush 

Sternberg,  Frank 353  Bush 

Toplitz,  J.  B 339  Bush 

Van  Wyck,  L.  H 353  Bush 

Wattles,  W.  S 339  Bush 

Weston,  J.  H 370  Bush 

Wingfield,   Geo Goldfield 

Wright,  W.  H 339  Bush 

Wolfe,  F.  L 714  Kohl  Bldg. 

Wilson,   Boyd   L 353   Bush 

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368] 


Stock  andExchangeBoard 


Presidents  of  the  Board: 

J.  B.  E.  Cavallier..Sept.  11,  1862,  until  Jan., 

E.  P.  Peckham Jan.,  1872,  "  Jan., 

William  Burling   Jan.,  1873,  "  Jan., 

James  R.  Keene Jan.,  1875,  "  Aug. 

Coll  Deane    Aug.  3,  1875,  "  Jan., 

John  W.  Coleman Jan.,  1876,  "  Jan., 

E.  P.  Peckham Jan.,  1878,  "  Jan., 

George  T.  Marye,  Jr... Jan.,  1881,  "  Jan., 

S.   B.   Wakefield Jan.,  1885,  "  Jan., 

E.  P.  Peckham Jan.,  1886,  "  Jan., 

Jeremiah  Lynch   Jan.,  1888,  "  Jan., 

W.  E.  Norwood Jan.,  1890,  "  Oct., 

J.  M.  Shotwell Oct.,  1890,  "  Jan., 

A.  F.  Coffin Jan.,  1892,  "  Jan., 

Wm.  Edwards  Jan.,  1894,  "  Jan., 

George  I.  Ives Jan.,  1895,  "  Jan., 

A.  G.  Gurnett Jan.,  1896,  "  Jan., 

Emmet  P.  Barrett Jan.,  1899,  "  Jan., 

A.  J.  McDonnell Jan.,  1901,  "  May, 

A.  B.  Ruggles .May,  1901. 


J.  B.  E.  Cavallier,  President  for  the  first  ten 
years,  was  highly  respected  by  the  members. 
His  portrait  remained  in  the  Secretary's  room 
for  forty  years.  It  was  finally  destroyed  in 
the  great  fire.  Benoni  Irwin  of  this  city  was 
the  artist. 

E.  P.  Peckham  was  elected  on  three  different 
occasions  as  President.    He  was  the  orator  of 
the  Board,  and,  when  necessity  required,  could 
always  deliver  a  fine  extempore  speech. 
[369] 


Board 
Membership 


History  of  the  Sanfhmdsco 


Board 
Membership 


William  Burling  had  always  been  one  of  the 
most  prominent  among  the  members.  He 
retained  the  business  of  the  Bank  of  California 
for  many  years.  He  was  quite  a  friend  of 
Keene  before  the  last  named  became  pros- 
perous, employing  him  as  a  street  broker  before 
Keene  joined  the  Board.  Mr.  Burling  died  in 
July,  1877. 

James  R.  Keene,  the  fourth  President  of  the 
Board,  was  elected  in  January,  1875,  but  on 
account  of  ill  health  resigned  August  3  of  that 
year.  He  was  active  in  the  reorganization  of 
the  Bank  of  California,  was  a  large  subscriber 
to  the  new  stock,  and  left  for  New  York  about 
July,  1876,  where  he  now  resides. 

Coll  Deane  succeeded  Keene  as  President  in 
August,  1875,  and  served  until  the  following 
January.  He  was  a  very  honorable  man,  proud 
of  his  name  and  honor;  it  was  impossible  for 
such  a  man  to  wrong  a  fellow  mortal. 

John  W.  Coleman  was  the  President  during 
the  construction  of  our  Board  building  on  Pine 
street,  to  which  he  devoted  a  great  deal  of  time 
and  attention.  After  the  work  was  completed 
he  retired. 

George  T.  Marye,  Jr.,  was  elected  President 
in  January,  1881,  at  a  time  when  our  great  busi- 
ness had  declined  to  a  low  ebb.     In  order  to 
[370] 


Stock  and  Exchange  Board 


assist  the  Board  he  inaugurated  a  Grain  Board 
in  May,  1882.  Mr.  Marye  deserves  great  credit 
for  this  effort.  The  Grain  Board  lasted  a  year, 
and  effectually  proved  that  the  heart,  spirit,  and 
ambition  of  our  members  could  be  attracted 
only  by  a  deal  in  mining  stocks. 

S.  B.  Wakefield  succeeded  Mr.  Marye  as 
President  in  1885.  Business  was  at  a  very  low 
ebb  at  this  period  and  the  mines  were  filling  up 
with  water.  A  revival  of  business  came  with 
his  successor,  Mr.  E.  P.  Peckham. 

Jeremiah  Lynch  became  President  in  Janu- 
ary, 1888.  He  had  been  elected  to  the  State 
Senate  of  California,  and  had  visited  Egypt, 
about  which  he  published  a  well-written  book, 
thus  demonstrating  to  us  he  had  literary  ability 
among  his  other  qualities. 

W.  E.  Norwood  became  President  January, 
1890,  dying  before  his  term  of  office  closed. 
He  had  been  connected  with  Joseph  H.  Jones 
and  was  recognized  as  a  broker  to  the  Bonanza 
firm. 

J.  M.  Shotwell  succeeded  to  the  chair  in 
October,  1890,  and  served  until  January,  1892. 

A.  F.  Coffin's  term  of  office  was  in  1892  and     Board 
1893.     He  had  succeeded  to  the  business  of     Membership 
W.  C.  Parker,  a  charter  member.    This  was  a 

[371] 


History  of  the  Sanfrancisco 


critical  period  in  the  history  of  the   Board. 
Many  old  members  were  leaving.    The  lower 
levels  of  the  Comstock  had  been  abandoned  C 
and  had  filled  with  water.    Business  was  very    * 
dull. 

William  Edwards  served  as  President  dur- 
ing the  year  1894.  The  dull  period  continued 
with  an  occasional  spurt  in  prices  and  business, 
throwing  a  little  life  at  times  into  affairs  on 
Pine  street.  Mr.  Edwards  was  cashier  and 
paying  teller  of  the  Merchants'  Exchange  Bank 
in  the  troublous  times  of  1875. 

George  I.  Ives  was  elected  President  in 
January,  1895.  Mr.  Ives  became  a  broker  in 
the  early  6o's.  At  one  time  he  was  a  partner 
of  James  R.  Keene,  joining  the  Board  in  Janu- 
ary, 1870.  As  a  broker  he  was  quick  and  active 
in  executing  an  order,  compelling  the  other 
brokers  to  adopt  a  similar  method,  especially 
on  orders  limited  as  to  price. 

A.  G.  Gurnett  succeeded  Ives  as  President, 
serving  four  years,  until  January,  1899.  He 
became  quite  popular  by  abolishing  the 
monthly  dues  of  $5,  and  by  endeavoring  to 
stimulate  trading  in  local  stocks. 

Board        Emmet  P.  Barrett  served  as  President  from 
Membership     January,  1899,  until  January,  1901.     He  suc- 
ceeded his  father,  John  S.  Barrett,  as  a  member 
[372] 


Stock  and  Exchange  Board 


of  the  Board  upon  the  death  of  the  last  named, 
in  January,  1890.  The  elder  Barrett  was  a 
splendid  specimen  of  the  old  school  of  edu- 
cated Irish  gentlemen.  Mr.  Emmet  P.  Bar- 
rett was  elected  a  school  director  and  served 
for  a  time  as  Secretary  of  the  Board  of  Edu- 
cation. 

A.  J.  McDonnell  was  elected  President  in 
January,  1901,  and  served  until  May,  1901.  In 
the  latter  month  he  was  elected  Superintendent 
of  the  Union  Consolidated  Mine  at  Virginia 
City,  and  resigned  the  Presidency. 

A.  B.  Ruggles  succeeded  Mr.  McDonnell  in 
May,  1901,  and  has  served  as  President  con- 
tinuously from  that  date,  a  period  of  eight 
years.  Great  events  to  us  have  happened  dur- 
ing his  administration.  We  sold  our  Board 
building  in  1903  and  divided  the  proceeds 
among  the  members.  The  new  mining  dis- 
tricts in  Southern  Nevada  are  developing  new 
bodies  of  ore,  and  their  stocks  called  in  the 
Board  have  increased  our  list  to  over  600.  The 
earthquake  and  fire  of  1906  destroyed  our  old 
Pine  street  building.  A  new  one  was  erected 
at  339  Bush  street  under  the  direction  of  Presi- 
dent Ruggles.  Immediately  subsequent  to  the 
fire,  business  revived,  almost  equalling  the  Board 
palmy  days  of  the  Board,  and  Mr.  Ruggles  has  Membership 
met  the  burden  of  his  office  with  judgment. 

[373] 


THE  UNIVERSITY  LIBRARY 
UNIVERSITY  OF  CALIFORNIA,  SANTA  CRUZ 


This  book  is  due  on  the  last  DATE  stamped  below. 


JW  H 

JAN  0  3 1989  Kt'l 


50m-6,'67(H2523s8)2373 


HG5131.S5K6 


3  2106  00099  0074 


